How about a Single Vat Rate?

[euroboy]

If you broaden the tax base for VAT then you can reduce the standard rate to somewhere between 15-21.5%.

Thats the trade off, exclude alot tax highly the rest, include many items(even if only at lowest positive rate) have lower upper rate(standard).

[Kazza]

Biscuits currently have 13.5% VAT on them. Chocolate biscuits are at the 21.5% rate. As Jaffa cakes are a biscuit "wholly or partly covered or decorated with chocolate" they have 21.5% on them.

Ah, but jaffa cakes are cakes & therefore have a Vat rate of 13.5%