British shops set for tax increase

Most shops across Britain were preparing to lift their prices on Friday because of an increase in the taxation on goods and services. The British government had slashed VAT, or value added tax, to 15.0 percent one year ago in a bid to boost the recession-struck economy and lift consumer spending.
However, Finance Minister Alistair Darling confirmed last month that VAT would revert back to its pre-recession level of 17.5 percent on January 1. British newspapers had reported earlier Thursday that a raft of retailers had already increased the prices of certain items in recent weeks. The so-called "stamp duty holiday" also expires on Friday. Britons had been exempt from paying a tax on property purchases, known as stamp duty, for houses and flats costing less than 175,000 pounds.