Government To Fight Ridiculous EU Ruling On Energy Products
The UK government is to take the fight to the European Commission over a ruling that says the reduced 5% of VAT for the supply and installation of energy saving materials is a breach of the European VAT Directive.
First raised by the Commission in a press release back in June, this issue has now been escalated by the government and by Climate Change Minister Greg Barker in particular who has begun a campaign on Twitter. You can see his tweet below and can retweet it directly from here if you want to support the cause.
Pls RT if you support our fight to STOP EU RAISING VAT on #Energy Efficiency Products frm 5% to 20%!! #GreenDeal
— Greg Barker (@GregBarkerMP) September 10, 2012
In an interview with the BBC, Mr Barker defended the government’s position, saying:
The Coalition’s approach to energy efficiency is good for the environment and good for growth. Rather than obstruct us Europe should follow our example!
The lower rate initially came about after a long campaign by several green groups and aims to try and reduce fuel poverty and carbon emissions while creating jobs.
If the Commission comes out on top it would mean immediate increases in the price of things like loft insulation and energy saving lightbulbs.
Green Steve’s Reaction
While I am not generally a fan of this government, they are 100% in the right on this one. Improving energy efficiency is almost always a lot cheaper than increasing the energy supply but many households cannot afford the one off costs; a low rate of VAT is the very least that should be done to help them implement these changes.
I am supporting Greg Barker’s Twitter campaign so if you are reading this and have a Twitter account then please retweet Greg’s tweet above.
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