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Reducing VAT makes no sense to me what so ever. Firstly 2.5% is nothing really on regular/not so regular expenses. Add to this the cost of implementation of the prices reductions on the ground in shops which will I would imagine make the overall price reduction on the shop floor around 1.5%-1.75%.
Taking the company I work for and the one I previously worked for I know how much it costs in terms of staffing to implement price changes of a few hundred products not to mention the thousands of product lines in the shop.
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