Tax changes slammed by Frost

Date: 22nd January 2008

A range of tax changes set to come into force in the near future have been criticised by the director-general of the British Chambers of Commerce (BCC).

Speaking in an interview with the Sunday Times, David Frost warned that the tax rises - including the proposed capital gains tax changes and compulsory employer contributions for personal pensions - will be damaging for small and medium-sized business in particular.

"We have to make clear that the proposals to increase taxes will lead to a loss of competitiveness and that will lead to a loss of wealth creation," he commented.

The comments came after more than 700 firms signed a letter addressed to chancellor Alistair Darling calling for a proposed increase in fuel duty to be scrapped.

Fuel duty saw a 2p rise last October and is set to be increased by the same amount in April. According to the BCC, the move could cost the UK haulage sector an extra £170 million a year.

TaxAssist Accountants focus their accountancy and tax skills specifically on small businesses and taxpayers in the UK.