22/02/2011 - Maintenance firms 'need tax cuts'
Sales tax charged to firms which carry out home repair and maintenance work should be slashed to help the industry return to healthy profits, a surveyors' group has said.
The new 20% rate of VAT has damaged property maintenance and repair companies, according to the Royal Institution of Chartered Surveyors. It claims this is increasing the risk of fraudulent tradespeople appearing on householders' doorsteps.
In a pre-Budget submission to the Treasury, the institution also claimed the higher VAT is likely to lead to 34,000 workers losing their jobs by 2019.
Spokesman Mark Goodwin said: "This Budget provides the Government with a chance to encourage growth and innovation in construction and property, providing much-needed jobs, tackling the housing shortage and ensuring that businesses have a continuing supply of high-quality premises."
Copyright © Press Association 2011
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