EU to prosecute UK over 5% VAT rate

[TedM]

Breaking: UK to face EU court over Green Deal tax breaks - 21 Feb 2013 - News from BusinessGreen

 

[SibertSolar]

Oh for god's sake....whatever next!

 

[SolarCity]

Well, we all feared it. This could be a huge hammer blow and IF the 20% VAT is enforced then the government will need to respond to keep PV, amongst other things, viable.

This is frustrating, even for a europhile like myself.

 

[whinmoor]

Not great news - this would really damage the industry. This could trigger another boom and bust with another deadline. Let's hope they don't implement it in winter as previously.

 

[SibertSolar]

When you hear the phrase "Brace! Brace!".....

 

[Earthstore]

So EU may now put another nail in the coffin for our renewables, EU will maybe kill of or fine our coal fired power stations, most power companies in the UK are owned by companies in the EU, not the UK.
Am I seeing something here???

 

[Gavin A]

5% VAT is not a subsidy, it's an equalising measure because fossil fuel generated electricity is also charged at 5% vat.

Why should renewable electricity be charged at higher vat than fossil fuel generated electricity?

 

[Earthstore]

Here is an old link from June 2012
Solar panels may lose green tax break |*Solar Power Portal

Just had a look around to see what other countries are paying, for example; Italy is 10% for PV.

Added.
Many countries seem to have totally different set ups, some have FIT's, some don't, the VAT rates seem to be all over the place, from their basic VAT to what they charge for various services, so I can not see how they can try and standardize all this.

Can we reduce the price of alcohol to match theirs, or cigs maybe??
What a can of worms....

 

[AndyOz]

In my humble opinion 5% is too high. Solar should be zero rated along with all other technology covered by the Green Deal.

Again it shows no joined up thinking.

 

[Octopus]

So its confirmed. the lunatics ARE running the asylum!

 

[Vegelen]

This is what happens when you subcontract your democracy to an unrepresentative, undemocratic 3rd party. Why are we truly surprised?
If you consistantly acquiesce, you eventually get usurped.
The European parliament is an entity lobbied and controlled by big business, not the people of Europe.
The Future of Europe will be decided by Influential business leaders and not the European electorate.
UK Politics: 1 Person, 1 Vote.
EU Politics: 1 Euro, 1 Vote.