Saturday , January 23 2021
Breaking News
Home / International Customs / U.K. labour plans tax on companies that pay over $425,000
U.K. labour plans tax on companies that pay over $425,000

U.K. labour plans tax on companies that pay over $425,000

LONDON: The U.K.’s opposition Labour Party will introduce a tax on companies that pay staff more than 330,000 pounds ($425,000) a year if it wins the June 8 general election, according to a person familiar with the plans. Party leader Jeremy Corbyn will unveil the proposed levy on Tuesday as part of a range of policies intended to “reverse” seven years of government by Prime Minister Theresa May’s Conservative Party, which he says has favored the rich over those in need. Under the plan, companies would be charged 2.5 percent on earnings over 330,000 pounds and 5 percent on compensation packages worth more than 500,000 pounds, according to the person, who asked not to be identified because the plans are still private. The proposal targets employers, rather than employees, to discourage them from awarding excessive pay, the person said.

“People want a country run for the many not the few and for the last seven years, our people have lived through the opposite — a Britain run for the rich, the elite and the vested interests,” Corbyn will say, according to speech extracts released by his office. “They have benefited from tax cuts and bumper salaries while millions have struggled and been held back.” Labour is lagging behind May’s Conservatives by almost 20 percentage points in polls. Corbyn will seek to rally support behind an agenda of increased taxes for the wealthy — including income-tax rises for those earning more than 80,000 pounds a year — and more spending on public services. He will say Labour is offering a “radical and responsible” program that will put “the preservation of jobs first” as Britain leaves the European Union, according to the speech excerpts.