The poorest households in the UK are being hit by VAT far more than the richest households, according to new figures from the ONS.
Figures show that while the poorest fifth of households in the UK spend 10 per cent of their disposable income on VAT, the fifth richest households spend just 5.3 per cent.
The poorest fifth of households now spend a higher proportion of their money on goods that attract VAT than they did in 1986, the ONS said.
David Breger of chartered accountants HW Fisher & Company said: ﾓThis reinforces what is widely perceived to be the fundamental inequality at the heart of VAT.ﾔ