Government should remove VAT on gas and electricty

If the government is really serious about helping families during this winter recession, why don’t they remove the VAT on gas and electricity?

VAT is certainly in the headlines this weekend as speculation mounts about a reduction to 15% in Monday’s pre budget report.  Our view is that consumers would be wise to save as much as possible in preparation for the tax rises to come, however I have another thought that I cannot let go.

Reduced VAT rates to 15% is great if you want to buy a new flat screen TV or book a holiday, but what about all those people suffering from fuel poverty who are forced to pay the 5% VAT on their heating fuels?

Removing VAT on heating fuels would not only put more money into people pockets, as Alistair Darling wants, but it will also help all those who are struggling to keep warm as the days get colder.

So if by chance Alistair Darling is reading this article, as he ponders how to spend his borrowed billions, please remove that horrible tax on keeping warm.  You will help many elderly people and low income families.

Permanently removing the VAT on gas and electricity will really help those who need it most.


  1. Chris MoneyhighStreet Staff 29th November 2008
  2. Joseph Rowe 29th November 2008
  3. Benl 23rd November 2008

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