Business and Management
Submitted By valastro
There are different government policies that have an impact on Costa Coffee. Some of these government policies are: * Taxation * Inflation * Unemployment
Government policies such as taxation have an impact on Costa Coffee. This is because taxation is collected from individuals and businesses. It is collected through direct tax and indirect tax. This is going to have an impact on Costa Coffee because they are going to have to pay business tax and this also means that the government is following their fiscal policy. If the government decides to increase tax it is going to slow the economy down and if the government decides to low tax it is going to speed up the economy. If the government decides to lower taxes, then Costa is able to invest money into their business. This is going to result in a positive impact because Costa are able to keep most of their profit and invest it into their business which is going to allow their business to grow and expand. There are many way in which the government is able use taxation to make sure that they are receiving money. Some of the ways in which the receive taxes are income tax, national insurance contributions, VAT, council tax, business rates, corporation tax and other tax. All these are a mixture of direct and direct tax.
There are many ways in which taxes are bringing advantages to Costa Coffee and disadvantages. In the Government Spending 2010 review, it shows that the government had a total of £548bn coming in through different taxes. It shows that a small amount of the money coming in was from business rates. This shows that this must have had a positive impact on Costa Coffee because they are a large business and they didn’t have to pay a large amount of money for taxes in 2010 – 2011. This also shows that the business rates were low and they didn’t have to pay high taxes and they were able to keep…...