Daily Management Review

UK will leave in force 45% tax for the rich


Following a barrage of criticism directed at the government, British Finance Minister Kwasi Kwarteng told the BBC that the government has decided to drop the proposal to eliminate the higher tax rate of 45% for persons with incomes exceeding £150,000 per year.

The prime minister has chosen not to abolish the rate, Mr. Kwarteng stated, adding, "We have listened to people, and I understand everything." The item was dropped from the agenda, the finance minister continued, since it "diminished a solid package of measures" to boost the economy.

Last week, the Finance Ministry unveiled its economic support strategy.

It included provisions for major tax reductions, including the reduction of the basic income tax rate from 20% to 19% starting in April 2023 and avoidance of a scheduled increase from 19% to 25% in the corporate tax.

A 40% reduction in the rate of supplementary taxation for persons with incomes over £150,000 sparked disagreement in the administration and a backlash from the public.

The pound fell to an all-time low versus the dollar after Liz Truss' economic stimulus package was published, and investors started unloading British government bonds in large quantities.

source: bbc.com