Anything which is generally essential or praiseworthy or part of a dying industry will be exempt from VAT and other taxes by 2016. The changes won't be stated generally, but specific things will gradually become exempt from tax because they do some good or because the tax does some damage.

Why is this idea important?

Praiseworthy or essential or a dying industry already includes charity sales, books and food but should move to pens, concerts, music, employment agencies, rent, mortgages, reasonable levels of use of electricity/ water/ broadband, radios, insurance. This means that taxes on other things can be increased so that the poor pay less tax on essential and praiseworthy items. It means that if you buy a Rolls Royce you could pay 24% VAT, but not any VAT on reasonable electricity use, rent, beds, or MOT. The exemption will mean less beaurocracy for lots of companies. 

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