LONDON: The UK tax system has been criticised by the campaign group TaxPayers’ Alliance, for being unfair and outdated in the way it targets different demographics. After analysing new data published by the Office for National Statistics (ONS), TaxPayers’ Alliance found that the poorest 10% in society paid an average of 47% of their gross income on taxes, the highest of any social group.
Similarly, average wage earning households paid £274 more in taxes than they received each year through state benefits and services.
Jonathan Isaby, CEO of the TaxPayers’ Alliance, said that any more increases to indirect taxes, such as VAT, would make even harder for the poorest sections in society, but warned that richer demographics were already paying over and above what could reasonably be expected.
The analysis found that the top 10% of earners paid more than £30,000 in taxes a year that what they received in state benefits or services, including use of state education and healthcare from the NHS.
Our tax system is neither progressive nor fair,” Isaby said. “We need radical reform as well as necessary savings if the way we tax and spend is to become fit for purpose.”HM Treasury was contacted for comment, but has yet to respond.
