America had often been discovered before Columbus, but it had always been hushed up - Oscar Wilde
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UK VAT whack will hit Iphone 4 and other gadgets
PRICE RISES WILL HIT every piece of electronics kit - desktops, laptops, handsets and even the Iphone and Ipad - come 4 January 2011 when the UK Government's VAT increase kicks in.
The Value Added Tax (VAT) increase from 17.5 per cent to 20 per cent was announced today by Chancellor George Osborne, Conservative member of parliament for Tatton, as part of the Conservative and Liberal Democrat parties' coalition government budget.
"This single tax measure will by the end of this Parliament generate over £13 billion a year of extra revenues. That is £13 billion we don't have to find from extra spending cuts or income tax rises," said Osborne.
He added, "I can also give this House a commitment that we will keep everyday essentials such as food and children's clothing, as well as other zero-rated items like newspapers and printed books, exempt from VAT over the course of this Parliament."
But there's no exemption for electronics. The Apple Iphone 4 16GB presently retails at the Apple store for £499 including VAT at 17.5 per cent. With Osborne's increase to 20 per cent VAT, the total cost of the Iphone 4 16GB will increase by a whopping £10.61 to £509.61.
Meanwhile, a Dell Alienware Aurora ALX desktop that retails today at around £1,400 including VAT will cost an extra £30. µ
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John, You're the typical idiot voter that keeps our taxes high and out of control spending going. I'm sure Labour knows how to spend your 10 pounds better than you do...such as going to the benefit rats that so pervade Britain.
Classic Apple-hater response there...thanks for earning me a fiver.
If you were a true elitist - like I am - you'd enjoy the game of setting of a troll and seeing who bites first - the bois or the haters. I won this one, since you (a hater) bit first.
Lets just say your credibility took a wee hit for not spotting that.
Please insert a quarter to play again. I've got double or quits riding on your response.
Of course they will need an extra 14+ billion now for the little BP snafu and all pension money having been invested in BP..
Plus higher taxes means less sale means less tax-income means 0 headway in the first place, plus it'll slow down industry, sounds like you have geniuses at the helm, who the hell did you elect? Cameron or something?
Because it rattles the cage of fatuous iNazis such as yourself, and while there's a near constant background drone about poor standards of journalism mixed with threats to never return and yada yada yada, they all keep coming back. And you will too.
@ organthruster ..well written, funny as fook!
...I'm not an economics expert, but has everyone decided to forget basic maths? VAT is a percentage rate, which has increased 2.5%. It means that if i spend £1 today, I'll spend £1.03 next year when the rate comes into force. Sure, scale this up to, say, the purchase of a £5000 car and you'd be paying £1000 in tax instead of £875. People that can afford to spend that kind of money are also the ones that can afford to support the country more than others. Yes, I know it means that the poorer amongst us won't be able to stretch to make those large purchases, but come on, it's 2.5 percent more than they're already taxed!!!
I wouldn't call £10 whopping when spending £500 already! I'm happy paying 20% if it helps get the country out of the crap.
Good grief, this applies to *all* purchases, bar a few exclusions....why single out Apple as being a victim?
Nothing to do with inq less than subtle hatred of Apple, of course. Oh no. Classy journalism.
I do find myself coming here less and less because of it, it has to said.
not really going to effect it at all really, if it's not coming in till january next year, pointless article lol
Wow, thanks for shining a light in the Blindingly obvious Rob! Let me see... increase in tax will raise the prices of stuff.
You're one of those highly skilled reporters that never lets anything slip by them aren't you?
Anyone crackers enough to throw £500 at a mobile phone isn't going to be fazed by tipping an additional tenner out of their wallet to cover a small hike in tax.
However, it is extremely gratifying that in addition to paying Apple its inflated Apple prices, iPhone buyers are also paying the government so that chavs on benefits can get one too. For while I can't be sure about the rest of the country, round here the sullen unwashed that gather in bus shelters and push each other about outside corner shops all have iPhones.
its a fashon acesery u gay innit
Of course, that won't apply until next January, so won't affect iphone 4 opening sales...