MP calls for more transparent taxation

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People are being "kept in the dark" about how much taxation they pay, according to a Conservative MP.

Ribble Valley MP Nigel Evans on Tuesday introduced a ten minute rule motion calling for more transparent taxation.

His bill would require all receipts printed in the UK to contain a figure for the amount of VAT charged.

Speaking ahead of the debate, Evans told ePolitix.com he wanted to "focus people's attention on the fact that the government is raising more taxation than ever before".

"We want to ensure that every penny that the government does raise is spent more efficiently and indeed generally that they start to reduce the amount that they're taking from the hard-pressed taxpayer," he said.

Evans said that while payslips included details on the amount of income tax and national insurance, people were often unaware when they were paying VAT.

"Many people really don't take too much regard of how much taxation they're paying when they buy products," he said.

"We know that when people are buying things like food from supermarkets... there's no VAT on it. But of course there's VAT on virtually everything else, certainly when you go to a restaurant there's VAT, when you fill up the car with petrol there's not only VAT but there's other customs and excise duties on that, the same with alcohol and cigarettes."

Evans acknowledged that VAT was "a legitimate taxation on products" but said that many consumers "perhaps don't even realise that they are contributing towards the exchequer's coffers".

"And I think it is right for them too that when they buy their products, that on the bottom of the receipt they find out how much they have contributed towards what the government spends," he added.

"The whole thrust about this bill is to give people transparency and knowledge about how much taxation they are paying, as well as their income tax and national insurance."

Revenue

Speaking during the debate, Evans said his bill would "ensure that taxation is as transparent as possible".

"People rightly want to know how their money is spent, but it is also essential that the government is open about how that revenue is raised," he said.

He added that the bill was focused on "everyday items" - such as fuel, tobacco and alcohol - which are subject to "multiple taxes and duties" and claimed that £41.2bn was raised in taxes on these products from 2007/08.

The MP insisted the legislation would not be "an extra burden" but a "hassle-free way of making government as open as possible".

And he said that safeguards would be put in place to ensure that businesses were not adversely affected by the move.

"It is important that people see where their money is going, that way a government can be held fully accountable," he said.

He added that he had received "unequivocal support" for the measures from Adam Smith Institute and Taxpayers' Alliance.

"I do not think there is a single argument that could be made that would suggest this Bill is not of benefit to the consumer.

"It is an uncomplicated way of creating a more transparent tax system. One in which the general population can experience and see first hand exactly how and where and when they are being taxed.

"It will lead to a greater understanding of the tax system and hopefully see the beginning of the end of stealth taxes with which this incumbent government has become synonymous.

"[This bill] is a simple measure that will ensure a better understanding of the tax system, allow transparency and provide greater appreciation of how taxes are collected."