‘EXPAND GREEN TAX BREAKS’ FIONA HALL TELLS COMMISSION

Fiona Hall, has called upon the finance ministers of member states to agree to cut VAT charged on many ‘green’ goods. Europe’s finance ministers met in Brussels yesterday to try and agree on cutting rates of VAT on environmentally friendly goods and services but a deal could be a long way off.

Traditionally, Britain and France have been two nations least likely to settle on a Europe-wide tax deal, but this latest proposal was first tabled in July by Britain and France. Nevertheless, agreeing a pan-European deal on VAT is no mean feat.

Member of the European Parliament (MEP) for the North East, and Lib Dem Spokesperson on Energy, Fiona Hall, has called on ministers to persevere and agree a deal.

Supporting a deal, Fiona Hall MEP said:

“Offering tax incentives for ‘green’ goods and services is a policy that is long over-due both in the UK and across the EU.  At the moment, some countries charge lower rates of VAT on energy efficiency works, but that doesn't go far enough. For example, if you pay someone to install loft insulation the VAT is at the lower rate of 5%, but if you buy the loft insulation from a DIY shop and put it in yourself you have to pay the full rate! 

“Using tax breaks to influence consumer choice is a policy that has been applied across the board, from cigarettes to alcohol. It is about time that we had similar incentives to ‘go green’.

“Having been drawn up jointly by France and Britain, this deal stands a real chance of becoming law. I urge all member states to commit to striking a deal and lowering the VAT on a range of environmentally friendly options for EU consumers.”