VAT cuts 'would help out car loans customers'

Nov 11 2008

The government should cut value added tax (VAT) to help out consumers and businesses and give the economy "a much-needed boost", the head of the Retail Motor Industry Federation (RMIF) has said.

In news that may be of particular interest to unsecured Car Loans customers, Sue Robinson called for the Chancellor to reduce the rate of VAT by five per cent to 12.5 per cent.

With more and more motorists forced to hold on to their used cars, Mrs Robinson said that a lower rate would help to bring down prices and bolster consumer confidence.

"By effectively cutting around five per cent from the price of a new car, and attendant maintenance costs, our recommended VAT reduction would be a step towards helping to revive the new car market," she explained.

Last week, the RMIF welcomed a decision by the Bank of England to slash interest rates by 1.5 per cent, stressing that it was "vital" that the rate was passed on to car loans customers to help bolster the market.

More from Financial and Loan News

---

---

---

---

---

---

---

---

---

---

---