Which tax, introduced during World War II to restrict spending on non-essential goods, was relaced in 1973 by Value Added Tax?
Purchase Tax by Value Added Tax (VAT), initially set at a rate of 10%, which was shortly afterwards reduced to 8%. Purchase Tax Purchase Tax was a tax levied between 1940 and 1973 on the wholesale value of luxury goods sold in the United Kingdom. Introduced on 21 October 1940, with the stated aim of reducing the wastage of raw materials during World War II, it was initially set at a rate of 33⅓%. The tax was subsequently set at differing rates dependent upon individual items' degree of "luxury" as determined by the government of the day. In connection with the accession
Value-added tax in the United Kingdom Value-added tax in the United Kingdom In the United Kingdom, the value-added tax (or value added tax, VAT) was introduced in 1973 and is the third-largest source of government revenue, after income tax and National Insurance. It is administered and collected by HM Revenue and Customs, primarily through the Value Added Tax Act 1994. VAT is levied on most goods and services provided by registered businesses in the UK and some goods and services imported from outside the European Union. There are complex regulations for goods and services imported from "within" the EU. The default VAT rate is the standard