Proposed VAT rate increase to 24% from 1 January 2013

The government has formally proposed that VAT rates will increase by one percentage point from 1 January 2013. The standard VAT rate is set to increase from 23% to 24% and the lower rates from 9% to 10% and 13% to 14% respectively. The increases are subject to final Parliamentary approval, which may not take place until close to year end.