British households are set to be stung by a Christmas tax of over £190 on their festive shopping this year, reveals new research published today.
The average UK household will have to cough up £191.75 on their festive shopping this year, according to the TaxPayers’ Alliance (TPA).
John O’Connell, chief executive of the TaxPayers’ Alliance, said: “Despite families already forking out a fortune this festive season, the taxman has clearly decided ‘tis not the season to be jolly.”
The Christmas period will yield £5.2bn for the Treasury’s coffers, generated by each UK household spending around £3,200 in December, 29 per cent more than a typical month.
VAT and alcohol duty are the key generators of receipts for the public purse, with the former yielding £153 per household.
“Alcohol consumption is 38 per cent higher in December than the typical month,” the TPA said, generating “additional December alcohol duty revenues of £406m”.
Elevated tax bills will add to pressures on household finances from the cost of living climbing 5.1 per cent, figures from the Office for National Statistics revealed yesterday.