GST is on the rise in the UK, as the economy continues to strengthen and unemployment remains low.
The Government has announced a one-off hike of 5% to 8.5%, which is “very welcome” as it “will bring the total tax increase in the next five years up to 6.2%”.
The Government also announced a three-year increase of 6.9% for goods and services.
This is also a welcome change, said the Government.
But there are still concerns that the tax rise will hit low-income households the hardest.
“The Government has set the new rate at an already very low level.
There are some who believe that it is too low,” said one official.
However, the official said that while the Government is taking a hard line on this, there is “no evidence” to suggest that the increase will hit many low- and middle-income earners particularly hard.
“It’s still too early to tell whether this will actually hit low income earners,” he said.
The increase will apply to goods and service tax (GST), which will rise from 1 April to 2 April 2019.
In contrast, the increase for the indirect tax rate, which is the main source of revenue for many governments, will not change.
“In the UK and around the world, there has been a steady increase in tax revenue, particularly from VAT and income tax, but the Government’s decision to increase the rate of tax by a significant amount in 2018 will have a major impact on those who have to pay it,” said Mr Brown, who also serves as a Treasury spokesperson.
“We want to make sure we have an overall well-functioning and effective tax system, so that low-to-middle-income families can pay their fair share.”
Mr Brown said the government is also reviewing the way the Government treats people with mental health conditions, including those with a disability, who might be at risk of suffering financial hardship.
The move will also be welcomed by the Government, which has long been under pressure to reduce the burden of the Government-funded disability payments.
However the Government says it will continue to make it easier for people with disabilities to receive benefits, as it is a “fundamental principle of our society”.
In a statement, the Department of Health said the tax increase will bring the UK’s total tax rate to 6%.
However, it said: “It is important to stress that the Government has consistently stated that it does not aim to reduce tax revenue or to raise the deficit.”
This is in line with other countries that have introduced tax rises, including the US, Germany and France.
The announcement comes as the UK government prepares to hold its first-ever Budget.
The Chancellor, Philip Hammond, is due to address the House of Commons on Tuesday.
The budget is expected to be unveiled later in the day, but there are no details yet on what the Budget will contain.
In his speech, Mr Hammond will also outline plans for the economy, including plans to create up to 1,500,000 jobs over the next four years, and to cut the deficit.
“This Government has been working hard to get the economy back on track and make a real difference in people’s lives,” he will say.
“I want to thank everyone who worked tirelessly to make the economy grow, grow, and grow.”