To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of (a) reducing and (b) removing VAT on the sale of new bicycles.
22 July 2022
VAT has been designed as a broad-based tax on consumption, and the twenty per cent standard rate applies to the vast majority of goods and services, including the sale of new bicycles.
According to OBR forecasts, VAT will have raised approximately £135 billion in 2021-22, helping to fund key spending priorities. Any reduction in tax paid is a reduction in the money available to support important public services.
The Government keeps all taxes under review.