Reshape tax system so UK can go green
CHANCELLOR Rishi Sunak is being urged by MPs to reshape the tax system to protect Britain from the “climate storm breaking all around us”.
And they highlighted a central issue in the Daily Express Zero for Zero crusade – the wayVAT actively discourages the public from going green.
The cross-party Public Accounts Committee slammed HM Treasury and HM Revenue and Customs for their inability to explain “how the tax system is used in achieving the government’s environmental goals”.
It said: “The Green Alliance argued that the current tax system is driving environmental perversities.
“It said there were three major areas – construction, household energy, and repair – where adjustingVAT could have clear environmental and social benefits, while helping the government to revive the economy.”
And they said that by the time Boris Johnson hosts the COP26 climate summit in Glasgow in November, the Treasury should “set out a clear vision of how it will work to help the UK achieve net zero”.
The MPs highlighted evidence showing thatVAT is “hindering rather than supporting environmental objectives”.
As part of the Daily Express Green Britain Needs You campaign, we are calling for Zero for
Zero – zeroVAT on products with zero or near zero emissions.
The committee said: “The Association of Accounting Technicians said there had been several seemingly perverse tax decisions that discouraged the greening of the British economy while raising some revenue.
“It gave the example ofVAT being increased from 5 per cent to 20 per cent on…most solar panel installations and heat pumps, althoughVAT on coal to residential properties remained at 5 per cent.” The Express has highlighted other anomalies such as new electric cars carrying the same 20 per centVAT as petrol and diesel vehicles.
Refurbishing or insulating your home incurs 20 per centVAT while building a new one is zero-rated.
Yet the Government is legally committed to achieving Net Zero – eliminating or offsetting all emissions – by 2050.
Meg Hillier, committee chairman, said: “Now we are six months from hosting the next major global climate summit and the climate storm is breaking all around us. HMRC and HMT need to catch up fast.”
A government spokesman said: “We’re leading the world in building back better and greener…The Prime Minister has outlined an ambitious Ten Point Plan to achieve our environmental goals.” Sign our Zero for Zero petition at express. co.uk/
greenpetition