Sajid Javid claims that the UK has a low tax rate, but how much do you actually pay each month?
As his party votes to slap Britons with a 1.25 percent National Insurance rise, UK health secretary SAJID JAVID insists the country is “low tax.” This website has looked at whether or not his claim is true.
Boris Johnson has won a vote in Parliament to increase the UK’s taxes, beginning with National Insurance. Tories will raise the rate by 1.25 percent next year in order to boost the UK’s ailing social care industry, violating a promise made in the party’s 2019 manifesto. Sajid Javid, the Health Secretary, has stated that the UK is a “low tax country,” at least until now, while muddying the waters on where the money from the new levy will go.
In an interview with the BBC’s Today show, he contrasted the UK’s tax rate to those of other European countries.
According to Mr. Javid, the UK’s total tax burden “as a percentage of GDP” is roughly 35.5 percent.
He claimed that the sum is “still less than France, Italy, and Germany.”
And the Health Secretary stressed that “after this change,” Britons would still live in a low-tax country.
The news of the planned tax increase has not gone down well with many Britons.
Regardless of the increase, Mr Javid’s initial assertion is correct.
Residents of the United Kingdom pay the least amount of tax when compared to the other European countries he mentioned.
The average tax to GDP rate is 33.8 percent, according to the Organisation for Economic Co-operation and Development (OECD).
The tax-to-GDP ratio in Germany is five percentage points higher than the global average, at 38.8%.
Under Italy’s tax-to-GDP ratio of 42.4, Italians pay significantly more.
France has the greatest tax-to-GDP ratio of the three, at 45.4 percent.
With a tax-to-GDP ratio of 35.5 percent in 2019, the UK is only below the OECD average.
As a result, the United Kingdom appears to have a low tax rate.
The amount that Britons pay is increasing, rising by 0.1 percent from 32.9 percent in 2018 to 32.9 percent in 2019.
As a result of the rise, residents of the United Kingdom currently pay more tax than at any other point in British history.
Prior to the rise, the tax share was at its highest level since the 1960s.
Mr. Johnson has now increased the tax burden to its highest point since 1950.
He has declined to rule out more tax hikes, and earlier proposals may be implemented. “Brinkwire News in Condensed Form.”