UK plans emergency cut in value-added tax: The Times

British Finance Minister Rishi Sunak is ready to cut the value-added tax (VAT) as part of the government's latest efforts to tackle economic fallout from the coronavirus outbreak, the

Sunday Times

newspaper reported.

British Finance Minister Rishi Sunak chairs the daily COVID-19 briefing at 10 Downing Street in London, Britain, May 29, 2020. /Reuters

Sunak has ordered officials to prepare options for reducing the sales tax, including a cut in the headline rate, and zero rating more products for a fixed period, the newspaper reported.

The finance minister may announce lowering the VAT and business rates in a speech in early July, the report added, citing officials.

Britain temporarily cut its value-added tax in 2008 during the global financial crisis, and Germany will do the same from July 1 for six months.

Sunak earlier suggested he was open to the idea but would first need to see how quickly consumers resumed spending.

Source(s): Reuters