I’ve only read the summary but Rita makes a key point to think about in the context of UK VAT policy post Brexit.
VAT exemptions and zero rates are very tempting to Chancellors of the Exchequer with an appetite for fiddling and a bit of populism. (Name one that didn’t fall into that category, at least sometimes.) And there are always lobbies behind extending and maintaining them.
But the result is a lower VAT base (so tax has to be raised elsewhere) and a more complex system )benefiting only lawyers and accountants).
The EU is - as Rita points out - vulnerable to this too. But the difficulty of changing EU VAT law - in other respects a problem - is here an advantage.
The UK, with its system of annual tax changes and poor strategic thinking about tax, is going to very vulnerable to these pressures.
