UK’s Sunak to increase business tax – GulfToday

UK’s Sunak to increase business tax – GulfToday

British finance minister Rishi Sunak to add tax on business to pay for COVID-10 support scheme extension in next month's budget. Sunak is expected to announce in his speech on March 3 of increasing corporation tax from 19 pence to 23 pence, according to a report. The move is likely to raise 12 billion pounds ($16. 8 billion) a year. According to Sunak allies, he won't be increasing the corporation tax above 23%. These measures will help pay for an extension to the furlough scheme, VAT cuts and business support loans until at least August. Britain's economy had its biggest slump in 300 years in 2020, when it contracted by 10%, and will shrink by 4% in the first three months of 2021, the Bank of England predicts. British public borrowing surged again in August to a new record high, driven by huge outlays to combat the coronavirus pandemic, with the budget deficit so far this tax year overtaking its full-year peak during the global financial crisis. British Finance Minister Rishi Sunak is considering a sweeping set of tax increases to help fix the huge hole in the public finances left by the coronavirus pandemic, newspapers reported. British firms called