McAfee refuses to pass on VAT cut

 

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Posted on 27 Nov 2008 at 14:10

Security software firm McAfee is refusing to pass on the VAT cut, because it claims it would be too expensive to update its systems.

Click here to read about McAfee's U-turn on its VAT policy

A PC Pro reader who belongs to McAfee's affiliate scheme was sent an email explaining the policy earlier today.

"Further to the announcement that UK VAT will be temporarily reduced from 17.5% to 15%, McAfee will not be making any changes to the recommended retail pricing of its consumer security solutions offered via the McAfee online store," the email reads.

"Instead, McAfee will continue to run regular promotions, offering new and renewing customers special pricing that represents outstanding value for money.

McAfee claims that it would have to put prices up if it were to implement the tax cut. "The cost to McAfee of updating its internal systems to reflect the change in UK VAT is such that the company would have been forced to increase the prices at which consumers purchase security solutions from the McAfee online store," the email adds.

McAfee's stance has angered the PC Pro reader, who asked for his name to be withheld. "I hope you're with me in being disgusted at this," he wrote. "I certainly don't agree with the latter statement - McAfee's prices are surely just a field in a database and easily updated."

McAfee told PC Pro it would "continue to evaluate customer feedback to take on board comments and will continue to review its pricing policy."

McAfee is out of step with much of the PC industry. All of the leading retailers we've spoken to have promised to pass on the tax saving to customers.

Have you heard of any other IT retailers refusing to pass on the VAT cuts? Let us know on the comments below.

Author: Barry Collins