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VAT: Energy

Volume 487: debated on Tuesday 10 February 2009

To ask the Chancellor of the Exchequer what progress has been made in discussions at EU level on reducing the rate of value added tax on energy-efficient products and energy-saving materials in the EU. (255086)

The European Commission announced in the “European Economic Recovery Plan” (COM (2008) 800) that it plans to bring forward a legislative proposal to allow reduced VAT rates for “green products and services, aimed at improving in particular (the) energy efficiency of buildings”. The Commission is expected to adopt this legislative proposal in the coming months, at which point European Council discussions of the proposal will begin.