Cameron Calls For VAT Cut For Sales Of Bicycles, Wind Turbines In UK - Telegraph

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VAT on bicycles and other "green" purchases such as wind turbines and environmentally friendly light bulbs should be cut, David Cameron suggested yesterday.

Addressing businessmen in the City, Mr Cameron, who until now has focused his green tax policies on higher charges for polluters, said he was also keen on rewarding the most environmentally conscious through the tax system. Asked by a businessman if he would consider cutting VAT from 17.5 per cent to five per cent on "environmental products" Mr Cameron - who cycles to work at the House of Commons every Wednesday - said the idea of lower rates for green goods was "attractive", if tricky to implement.

Any decision on VAT would have to be negotiated with European Union finance ministers. Last month Gordon Brown used an EU summit to propose lower VAT for more efficient "white goods" such as fridges and dishwashers.

The European Commission has agreed to look into the idea, although negotiations over VAT are notoriously difficult because they require unanimous agreement of all member states. Most countries are keen to push for exemptions that would benefit their home industries. The view in Brussels is that there are better tools than VAT to encourage green behaviour.

EDIT

http://www.newsobserver.com/news/story/1024617.html

[RC]

1. The link is to Pond scum

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