In a word VAT. The government charges 17.5% tax on all luxury items, you pay it on all sorts of things but don't realise it because its included in th...

Stu commented to Poll: Which XBox 360 package will you buy? · November 6th, 2005 @ 2:53 pm

In a word VAT. The government charges 17.5% tax on all luxury items, you pay it on all sorts of things but don’t realise it because its included in the price. The US price dosen’t include sales tax (which varies from state to state - in California it is 8% for example)

Add 17.5% to $400 and it becomes $470 - which is 269 pounds, a tenner less than the UK price.

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