Retailers call for tax cuts on energy-efficient products
February 12, 2007
The British Retail Consortium (BRC) has issued a statement calling on the Chancellor of the Exchequer, Gordon Brown, to promote the take-up of green technology by lowering VAT on energy-efficient products, such as low-carbon light-bulbs.
The BRC points out that under European law, the Chancellor can immediately lower VAT on these products to 5% and the retail industry body said this should be done and followed up by launching a campaign at European level for VAT to be scrapped completely on all green technology.
The request was formally made in the BRC's 2007 Budget submission, and submitted to the Chancellor on 7 February.
The BRC is also calling for action on a number of other issues, including micro-generation, and says the Government should "remove the contradiction between its green objectives and its business rates policy".
A BRC source said that currently, businesses that add small-scale renewable energy plant and machinery, such as wind turbines and solar panels, to premises see their rates bills rise because they are regarded as building improvements, which increase property values.
The BRC says the Government should remove this anomaly and promote the take-up of renewable technology among businesses by exempting renewable technology improvements on buildings from rateable value assessments.
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