Director Sue Robinson has called upon Chancellor Alistair Darling to chop the rate of VAT to 12.5 per cent.
‘A reduction in VAT would benefit both consumers and businesses, and give the economy a much-needed boost,’ she said.
It would not only reduce retail prices of cars by a healthy 5 per cent, but also costs for businesses.
‘A lower rate of VAT would help bring down prices without there being a negative impact on retailers. At the same time, it would also help reduce costs for businesses.
‘Our recommended VAT reduction would be a step towards helping to revive the new car market.
‘With the Treasury looking for ways to stimulate the consumer economy, we believe that this is a viable option, and are strongly urging the Chancellor to enact the move.’
It could be a busy few weeks for our Chancellor…