Overhaul of the tax and VAT regime to help drive greener behaviours, products and services strongly favoured by poll respondents and citizen’s jurors. Reforming the tax system and VAT to incentivise greener products, processes and services would be likely to command strong backing from the UK public, findings from public surveys and a citizen’s jury exercise carried out by Green Alliance and strategy consultancy BritainThinks suggest. Green Alliance, which has long campaigned for an overhaul of VAT to help accelerate the drive towards a greener economy, said the research findings released today provided added impetus for the UK to use its new-found regulatory freedom outside the EU to better align the tax system with its climate and environmental goals. At present new build homes pay zero VAT, yet renovation of homes – a more environmentally-friendly option – incurs the standard 20 per cent rate tax, as do energy saving materials used to carry out such renovations, as well repairs of products such as smartphones and washing machines. The think tank said such “environmental perversities” in the UK tax system discouraged energy efficiency improvements and repair works, instead favouring less efficient materials and a throwaway culture of consumerism.
Business Green 17th Aug 2021 read more »