| Description |
1 online resource (17 pages) |
| Series |
Briefing paper (Royal United Services Institute) |
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Briefing paper (Royal United Services Institute)
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| Summary |
In defense acquisition, the tax revenue implications of a given choice are frequently overlooked. Given that the government, including the Ministry of Defense, is committed to reducing the budget deficit this issue is highly pertinent. Using an actual contract and an explicit accounting method, this paper finds that the tax revenues are significant; they can yield to the Exchequer over a third of the value of the contract. This figure is of obvious procurement policy significance at a time when there is such concern with the government's budget deficit. Using a CIMA approach, a clear methodology and explicit assumption, the study tracks the tax revenues associated with an actual £1 million contract, and concludes that the government could get back over 28 per cent in income tax and national insurance payments alone. The paper also suggests if the UK spends a third of its defense budget on off-the-shelf foreign systems, as outlined in the Green Paper on Equipment, Support and Technology, the Treasury would lose about £1 billion in revenue, which could have a negative effect on government revenues and thus the public sector deficit |
| Notes |
"January 2012." |
| Bibliography |
Includes bibliographical references (pages 16-17) |
| Notes |
Online resource; title from PDF title page (RUSI, viewed December 6, 2013) |
| Subject |
Great Britain. Ministry of Defence -- Procurement -- Evaluation
|
| SUBJECT |
Great Britain. Ministry of Defence. fast (OCoLC)fst00541899 |
| Subject |
Budget -- Great Britain
|
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Defense contracts -- Economic aspects -- Great Britain
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Public contracts -- Economic aspects -- Great Britain
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Taxation -- Great Britain
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Armed Forces -- Procurement -- Evaluation.
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Budget.
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Defense contracts -- Economic aspects.
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Public contracts -- Economic aspects.
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Taxation.
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Great Britain.
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| Form |
Electronic book
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| Author |
Louth, John, author.
|
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Royal United Services Institute for Defence and Security Studies, issuing body.
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