Reduce VAT on Energy-efficient items! (Stockton Liberal Democrats)

Stockton Liberal Democrats <info@stocktonlibdems.org.uk>

Reduce VAT on Energy-efficient items!

November 21, 2007 12:40 PM

Recent bulletin from the (non-party-political) NE England Office in Brussels quotes Fiona Hall, our MEP:

"EU finance Ministers debate expanding list of VAT reduced rates on environmentally-friendly products

On 13 November, EU member states sent their finance ministers to Brussels to discuss a proposal to reduce VAT rates on certain environmentally friendly goods. This proposal could support regional and local authority funded initiatives in the North East on addressing household energy efficiency, fuel poverty and community engagement.

Fiona Hall (MEP for the North East and Lib Dem Spokesperson on Energy) recently reacted to the finance Ministers' meeting, saying: "Offering tax incentives for 'green' goods and services is a policy that is long overdue both in the UK and across the EU", adding "Having been drawn up jointly by France and Britain, this deal stands a real chance of becoming law."

Current EU VAT rules are aimed at giving poorer households better access to energy, by authorising reduced rates for energy consumption. In July, France and Britain announced their support for an extension of the list of products the current rules apply to and include products such as energy efficient light bulbs and insulation materials. Any reduction or harmonisation of VAT rates throughout the EU however requires the unanimous backing of all EU member states, making progress on this proposal difficult to achieve.

The French government has indicated it intends to push for agreement on the reduced VAT rules during its EU Presidency (July to December 2008)."

A Commission press release on this issue can be found at:

http://tinyurl.com/2btmmf