Poll Tax Slashed 33% in Britain
Chancellor of the Exchequer Norman Lamont dropped a budget bombshell Tuesday, digging into the pockets of the biggest spenders in order to slash the hated poll tax.
Lamont said he is cutting the poll tax one-third by raising the value added tax, paid on most goods and services, from 15% to 17.4%. Taxes will also rise on company cars, mobile telephones, alcohol, tobacco and gasoline.
The poll levy--a head tax on all adults, rich and poor--was imposed by former Prime Minister Margaret Thatcher, replacing property taxes to pay for local services such as schools. It caused riots and cost the Conservatives seats in Parliament.
The higher value added tax will enable the central exchequer to pump about $8 billion into local government coffers, cutting the average person’s poll tax by $250.
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