How will the VAT rise affect disabled people?
VAT is a ‘regressive’ tax in that lower income groups pay a higher percentage of their income on VAT than higher income groups, who tend to save and invest their money above a certain point. A 20% VAT rate will particularly hit disabled people who tend to be among the most economically disadvantaged and often spend a higher percentage of their income on goods and services (on which VAT is charged) than they save or invest.
