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Re: Why does oil cost so much in the UK? (non lbc)

To: "Bob Howard" <mgbob@juno.com>
Subject: Re: Why does oil cost so much in the UK? (non lbc)
From: <paul.hunt1@virgin.net>
Date: Tue, 5 Sep 2000 20:14:21 +0100
Bob - sounds like it's from the same madhouse as UK VAT.  Imagine the grower
of trees sold for wood-pulp.  Now he has to pay VAT on everything he buys to
grow, harvest and ship the trees to the pulper, he also charges VAT on the
trunks he sells to the pulper.  However as a business he can claim back all
the VAT he has paid, minus the VAT he has received.  The pulper does exactly
the same in making rolls of paper that he sells to a paper-bag manufacturer.
And the paper-bag manufacturer does the same thing in selling his products
to the wholesaler, and the wholesaler to the retailer.  However the
retailer, who gives the paper bags away with the produce, can claim back all
the VAT he has paid, but since the bags are given away free no VAT is
charged to the consumer.  So the VAT Man gets nothing, but everyone in the
chain has to make all these calculations and submissions.

PaulH.

----- Original Message -----
From: Bob Howard <mgbob@juno.com>
To: <paul.hunt1@virgin.net>
Sent: Friday, September 01, 2000 8:58 PM
Subject: Re: Why does oil cost so much in the UK? (non lbc)


> Paul,
>   That the state tax is a separate tax is a good question, one for which
> I do not know the answer.  My business is in Connecticut, and I prepare
> the sales/use tax return each quarter.
>   The state's rules are very clear that one may not include the tax in
> the price, that it must always be calculated separately and then added
> in.
>   To annoy one further,  cable television providers are taxed by the
> Federal government. They show that tax on a line under their charges.
> Connecticut then applies its tax to the total of the service plus Federal
> tax.
>   Were one to purchase goods out of this state, as in mail-order
> merchandise, one is required to calculate the tax due to Connecticut at
> its six per cent rate, then subtract any tax paid to the other state, and
> remit the balance to Connecticut.
>   One remembers the Beatles "Taxman."
> Bob
>
>


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