UK government proposes VAT hike on renewable energy

• 8 years ago (2015-12-11)

Europe 1089 Renewables 776

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The move has been met with anger within the industry, as HMRC also claimed that the measure would “affect fewer than 500 000 individuals and households and the impact… is anticipated to be negligible”, it said in a consultation released on Wednesday.

The Solar Trade Association (STA), a lobby group for solar power, said: “As countries are racing to secure the new global climate agreement, the UK has just proposed quadrupling VAT on solar installations for people’s homes to 20 per cent, while oil heating, coal and gas remain on 5 per cent. The International Energy Agency is in Paris right now calling for an end to fossil fuels subsidies just as the Treasury proposes tilting the playing field here away from clean power for British households.”

Doug Parr, chief scientist at Greenpeace UK, said: “A vital part of the sustainable energy future being championed in Paris today is being undermined in London by changes to VAT that must be resisted.”

However, a spokesperson blamed the rise on the EC, noting that they had done all they could fighting the measure in court: We lost the case. We cannot appeal or go any further so we have to make changes to the rules to comply with European law.”