VAT free Shopping Days

Specify certain dates for VAT free shopping/dining/services. Throughout the year the govt can specify days on which items can be purchased VAT free.

For example if you make it shoes, you will get all the women/mothers out there, who will shop for other items upon which VAT would be charged. This also gives shops opportunities to move product that they might not be able to shift as easily via sales. It also brings more people into shopping areas/high streets, which means more money spent on transportation/petrol and food&drink. This can be done around multiple verticals and industries. This puts people in the frame of mind to purchase more because they see themselves saving what they would have spent on VAT. These days can be staggered throughout the year and be applied to industries who are especially feeling the pinch of the recession.

Bottom line is you get people out and about and puts money in circulation. There are a lot of High Streets around which would benefit from having consumers gently prodded in the right direction.

And yes while it does mean an up front hit to the government on VAT being collected, it does give the opportunity to shops to generate revenue and perhaps not have to lay off an employee or worse, go out of business.

This could be applied to Petrol where the Govt on certain weekends reduces the amount of tax on petrol, so petrol stations around the country roll back the cost per litre by whatever the decrease in the tax. In the States it was found that when petrol is less expensive, families go out in the cars and will go shopping, dining, etc … Bottom line: more money is spent.

These are fundamental growth opportunities which can be managed by the Government. It is like turning levers to “fine tune” the economy.

Why don’t you add these to the pot.
Now that I understand the short term/immediacy of it all, these suggestions better fit the bill.

David Blumenstein, TEWKWORKS | Sun 12th Jan 2014 at 18:12

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