Bulb calls on Treasury to scrap VAT on green products ahead of ‘tax day’
Challenger energy brand Bulb has today called on the Treasury to scrap VAT on green products in a bid to encourage more households to “go green”.
According to the firm, which now supplies energy to 1.7m households, scrapping the duty on such items could save the average family £5,500.
As a result of the UK’s departure from the EU, it is now possible for ministers to change the levies on certain products.
Without VAT, Bulb said, a mid-range EV costing around £27,000 would be £4,517 cheaper, with running costs as little as a quarter of the petrol equivalent.
And an energy efficient fridge freezer could see its price cut by £70, taking the cost down to around £350. Customers could also save up to £100 on cheaper bills by buying such models.
The firm is making the calls on the eve of the Treasury’s so-called “Tax Day”, when it begins a range of consultations on current policies.
Chief executive Hayden Wood said: “Families shouldn’t pay more for choosing green options. Scrapping VAT on green products is a no brainer which would stop some of the most energy efficient products being more expensive than their polluting counterparts.
“This would make green technology more affordable for millions of people, as well as lowering their energy bills and carbon emissions.”
Earlier this month business lobby the CBI called for a wholesale restructuring of the UK’s tax regime in order to focus on cutting carbon emissions.
The industry body said that instead of making changes to individual taxes, ministers should instead pursue “fundamental change with a holistic, coherent tax plan”.
Morning Wire has contacted the Treasury for comment.