Sunday, August 12, 2007

VAT and What not….

I picked up the newspaper, and while I was scanning through, something caught my eye - there was this news article that hotels were charging VAT for liquor while they should not be doing so. Apparently, liquor is exempted from VAT.
"Products including petrol, diesel, aviation turbine fuel, liquor and lottery tickets will be exempted from VAT." (Source: news.bbc.co.uk)

Somehow, I don't get the logic of taxing food and exempting liquor! Any ideas?

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