BUDGET: VAT increase to 20% to hit gadget fans
If you think you pay over the odds compared to our American cousins then you won't like the news fresh out of the June Budget from the new coalition government. Gadget purchases are about to get a lot more expensive following the news that VAT on all electronic goods will rise from next year.
The move means that VAT is to rise from 17.5 per cent to 20 per cent from 4 January next year, the chancellor has announced.
What does that mean for gadget fans? You'll be paying a further 2.5 per cent on top of what you already pay.
That means a 16GB Wi-Fi iPad goes from £429 to £438, while a PS3 Slim will jump from £249 to £254. Software is affected too so a copy of Windows 7 Home Premium would jump from a list price of £149 to £152.17.
What do you think of the new VAT charges, do you think gadgets should be exempt? Or is the government fair to put up prices to reduce the debt that the country is loadedwith? Have your say in the comments below.