Tax hikes of £20billion in pipeline, according to reports

Tax hikes of up to £20billion are being considered by the Treasury to deal with the cost of the coronavirus crisis, it has been reported.

Ministers are looking at raising capital gains tax and corporation tax in the November Budget, according to the Sunday Times.

The money could be clawed back from pensions, businesses, the wealthy, and foreign aid, the newspaper said.

Chancellor Rishi Sunak is considering hiking corporation tax from 19% to 24% in order to boost revenue by £12bn next year, the report indicated.

Capital gains tax might also be paid at the same rate as income tax, under the ideas being looked at.

Pension tax relief could be “slashed” under measures being considered by the Treasury to help pay for the Covid-19 crisis, the Sunday Telegraph reported.

The newspaper also said that raising fuel and other duties was also being looked at.

A revamp of the inheritance tax system and the introduction of an online sales tax was also being considered.

The international development budget could also be caught up in Treasury reappraisals due to the cost of the pandemic, it was claimed.

The aid budget has already been cut by £2.9bn from £15.8bn this year, due to the contraction in the economy caused by the Covid-19 outbreak.

However, the Government insists it still meets its obligation to provide 0.7% of gross national income (GNI) to international development.

Treasury sources told the PA news agency that they do not comment on what may, or may not be, in the upcoming Budget.

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