Indirect taxation: back to the drawing board?

Article Abstract:

The European Commission issued a series of indirect taxation proposals in August 1987 as part of establishing a single market in the European Community by 1992. The proposals covered: the removal of border checks; the harmonizing of excise taxes on tobacco, mineral oils, and alcoholic beverages; and the approximation of value added tax (VAT) rates. The VAT proposals involve setting up a clearinghouse to balance out the differences in VAT rates of the member countries, along with a two-level VAT rate where a low rate from 4-9% would be paid for 'essential' products and a rate of 14-20% would be used for other products. Critics argue that allowing members to set their own VAT rates could cause cross-border trade distortion, and the Institute for Fiscal Studies has recommended that only minimum VAT rates are needed. The clearinghouse plan has been criticized because it would raise compliance costs while creating the potential for fraud. The proposals for excise duties would result in major adjustments and revenue losses for some member states. The UK government has been one of the most vocal opponents of the Commission's proposals, with both Prime Minister Margaret Thatcher and Chancellor of the Exchequer Nigel Lawson having made statements on the matter.

Economic aspects, Laws, regulations and rules, European Union. European Commission, Tax policy, Single European market, Europe, Western

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Efficiency, funding and the NHS

Article Abstract:

There is some controversy as to whether the conservative government has made the National Health Service (NHS) more effective. The UK spends less of its GNP on health than the US, Germany and Sweden. The quality of health care is the same or better than countries spending much more. The fact that there is no rationing by price at the point of delivery which could lead to waste of resources is countered by the fact that the income of the medical staff is not dependent on the amount and expensiveness of the treatment they provide so there is less pressure to over-prescribe. The government has put pressure on the NHS to boost efficiency but the government's structure of NHS financing promotes inefficiency.

Analysis, United Kingdom. National Health Service, Cost (Economics), Costs (Economics), Great Britain

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Irish commission seeks overhaul of indirect taxes

Article Abstract:

The June 1984 report of the Irish Commission on Taxation proposes simplification of Ireland's value added tax, the Irish equivalent of a general sales tax. The economic effects of the Irish value added tax on commodities such as food, clothing, shoes and television sets are discussed.

Taxation, Ireland, Commodities

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