I propose that VAT rates be reduced to the lowest former level allowed by EU directives, namely:

- the standard rate of VAT, which applies to all goods, goods and services not subject to a reduced rate of VAT or VAT exemption, should be reduced to 19%, as it was in the period immediately after the introduction of VAT (from 1.7.1999 onwards).

- a reduced VAT rate of 5% on products, goods and services on which sales tax was 5% before the introduction of VAT and which can be taxed at the reduced VAT rate under EU directives (food, books, passenger transport, medicines, hotel services, etc.)

- all other products, goods and services should be subject to VAT at 8%.

- abolish the tax on lottery tickets and financial services.

- the tax on insurance transactions should be reduced to 5% (the sales tax on services was 5% before the introduction of VAT)

 
I believe that lowering indirect tax rates (which include all of the above and many more) would increase consumer spending or, holding retail prices constant, would increase the amount left over for businesses to use to increase wages for their employees, invest in business development or pay dividends to business owners (a greater incentive to invest in entrepreneurship).