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VAT: Fuels

Volume 475: debated on Monday 12 May 2008

To ask the Chancellor of the Exchequer if he will consider the merits of (a) suspending and (b) reducing value added tax on domestic fuel to assist low income households with heating costs. (204311)

Supplies of fuel and power for domestic use already benefit from a reduced rate of VAT of 5 per cent. This is the lowest rate available under our VAT agreements with our European partners.