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The BRITISH could be hit by huge tax increases to raise £ 20bn a year to cover debt caused by the coronavirus pandemic.
Treasury officials are said to be planning a five-fold increase that would be the largest tax increases in a generation.
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But the move, which could be pushed into the budget, is being blocked by some high-level figures at No. 10, The Sunday Telegraph reports.
Under the proposals, the capital gains tax could be merged with the income tax, while the pension tax relief could be drastically reduced.
Tariffs on fuel and others could be raised and taxes on online sales could also be introduced to help plug any gaps in the economy.
A revamp of the inheritance tax system and the introduction of an online sales tax were also being considered.
The international development budget could also be affected by Treasury reassessments due to the cost of the pandemic, it was stated.
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.
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However, the government insists that it still fulfills its obligation to contribute 0.7% of gross national income to international development.
The plans are expected to raise the £ 20bn needed to help pay off debt caused by the coronavirus chaos.
But No. 10’s advisers fear the increases could derail the economic recovery, with some wondering if the money could be taken from cuts in the current spending budgets of Whitehall departments.
Leading economists and business leaders have also warned that raising taxes in the current recession would “whistle in the wind.”
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They have asked Chancellor Rishi Sunak not to raise taxes during the worst recession in 300 years, but to focus on helping growth.
There are also fears that the proposals will affect the south of England and London more than the rest of the UK.
A Treasury spokesman told the newspaper: “We do not comment on speculation about tax changes before fiscal events.”
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