LONDON (UK) – Treasury officials in Britain are insisting on tax hikes to deal with the crisis in public finances due to the coronavirus pandemic, as told by two leading British newspapers.
A few hikes will provide a platform for the exchequer to raise at least 20 billion pounds a year, and some are likely to be introduced in the November budget, the Sunday Telegraph said.
The Sunday Times newspaper said officials were looking into plans for a 30-billion-pound “tax raid” with regard to the wealthy, businesses, pensions and foreign aid.
It also added that in its budget, the government has plans to raise both capital gains tax and corporation tax.
A proposal to bolster corporation tax to 24% from 19% is being looked upon by Finance Minister Rishi Sunak. This move would help raise 12 billion pounds next year, rising to 17 billion in 2023-24, the paper said.
However, the Treasury did not immediately respond to a request for comment.
The economy is still grappling to recovery after witnessing a record 20% low in the second quarter. This has been seen as the largest decline of any big country.
Sunak has indicated that some taxes will need to be raised over the medium term.
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This story has been edited by BH staff and is published from a syndicated field.