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The Charities Tax Reform Group (CTRG) has renewed its call for charities’
exemption from VAT following the weekend announcement that the Government
is to refund VAT from the sale of the Band Aid DVD and new version of the
single Do they know it’s Christmas, released next month.
The Band Aid Trust expects the gesture to save it up to £4 million.
"What is true
for Band Aid is true for the rest of us – if VAT was waived for
all registered charities there would immediately be an enormous boost
to our finances,” a CTRG statement released today reads.
"Take away the
VAT problem and beneficiaries of charities would benefit more and charities
themselves would see a considerable reduction in their administrative
overheads.”
The Charity Finance
Directors’ Group chief executive also questioned the Government’s
selectivity in granting VAT relief. “We are extremely disappointed
that after a long campaign to allow all charities to recover VAT, the
Government has once again chosen a special case approach,” said
chief executive Shirely Scott.
The Treasury’s
gesture mimics the Tory government’s refund of VAT from sales of
the original Band Aid single and its own refund of VAT on the record Candle
in the Wind, the proceeds of which went to The Diana, Princess of Wales
Memorial Fund.
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