UK’s Sunak considers emergency cut in VAT

Bloomberg

UK Chancellor of the Exchequer Rishi Sunak is mulling an emergency cut to the country’s Value-Added Tax (VAT), The Sunday Times reported.
Sunak has asked officials to prepare various options to lower the sales tax, including reducing the headline rate and zero rating more products for a fixed term, the report said. He could make the announcement in a speech scheduled in early July.
The move comes as UK government debt rose above 100% of gross domestic product in May for the first time since 1963, reflecting a sharp drop in economic output. Prime Minister Boris Johnson has said the government is looking at various ways to help the country recover from the Covid-19 fallout and “bounce forward.”