JAKARTA. The UK government is ready to cut tax rates as inflation eases. This was conveyed by British Prime Minister Rishi Sunak, as quoted from bbc.com.
According to him, the tax reduction is a promise that was previously made, if inflation continues to fall by half. The promise has been fulfilled when referring to October inflation data which has dropped to 4.6%.
Low global energy prices caused the decline in inflation. In addition, the UK government has also decided to withhold salary increases.
Sunak said the tax cut plan will be decided and announced soon. However, he refused to explain what kind of taxes would be cut.
Quoting reuters.com, Sunak's plan is also inseparable from the pressure of conservative parties who have long asked the government to reduce tax rates.
However, Sunak is reluctant to rush to reduce tax rates for fear that the impact will worsen the economy, as did his predecessor prime minister, Liz Truss, who failed to gain market confidence.
For information, referring to the opinion of the Think Tank Institute for Fiscal Studies, the tax rate in the UK has been at its highest point in 70 years.
Apart from announcing a tax cut plan, Sunak also intends to solve another problem, namely, unemployment. According to him, around 2 million people of working age currently do not have jobs.
Other policies to encourage economic activity are building a sustainable energy network, a world-class education system, and changing the benefit system for working-age adults. (ASP/KEN)