Regressive VAT

sir – It is time we told the truth about the origins of the winter fuel allowance (Letters, May 31).

As a consequence of our joining the European Economic Community, VAT was introduced in 1973, and controversially levied on domestic fuel in 1994. It was argued that VAT was a regressive form of taxation, affecting the poor disproportionately more than the rich, so items such as books and children’s clothing were exempt.

Despite its regressive form, VAT was extended to domestic fuels in 1994. Gordon Brown introduced a workaround in the form of a paternalistic rebate, the winter fuel payment, aimed at pensioners (and their votes).

Shouldn’t we be looking at areas where VAT might be removed altogether, rather than pretending that the Government has given pensioners anything to help pay for fuel? Frank Jurksaitis

London SE13