J Sainsbury CEO: UK VAT Rise Date Is Disappointing

22nd Jun 2010 19:08

By Simon Zekaria Of DOW JONES NEWSWIRES The chief executive of U.K. supermarket group J Sainsbury PLC (JSAIY,SBRY.LN) on Tuesday expressed his disappointment over the date of the rise in value added tax next year. The coalition government is raising the tax to 20% from 17.5% on Jan 4. "While they have provided plenty of notice, the date of the change is somewhat disappointing as it's so soon after Christmas and right in the middle of the January sales period," Justin King said. King, however, applauded that the government's decision to continue to exempt food from VAT. "We're pleased that the government has listened to our argument that widening the scope of VAT to include food would hit the poorest hardest." U.K. supermarkets fear that tax hikes, public-spending cuts, unemployment and higher fuel prices, among others, will put pressure on consumer spending. -By Simon Zekaria, Dow Jones Newswires; +44 207 842-9410; [email protected] (END) Dow Jones Newswires June 22, 2010 14:08 ET (18:08 GMT)