•UKIP MEP Roger Helmer hammered a ruling by the European Court of Justice today banning Britain from cutting VAT on energy-saving materials.
The infringement judgement from the European Court of Justice (ECJ) in Luxembourg said Britain was breaching the EU's VAT Directive by applying a reduction across board in the rate of VAT applied to energy-saving materials for housing. The ECJ judges who have final decision on the application of EU law said such a reduction should only apply to social housing.
UKIP Energy spokesman, Roger Helmer MEP responded:
“This is simply ridiculous beyond belief. While the EU claims it wants to reduce energy consumption, this judgement shows what the EU ‘really really wants’ is to increase its take from the VAT system from which it takes a portion of every transaction. In addition, this decision demonstrates that it’s the EU rather than the British Government which has final say over the rate and scope of the VAT system.
“Not content with banning tungsten light bulbs previously, the EU wants to make it more expensive for ordinary people to save energy and money in their own homes. The upcoming EU referendum will allow the UK to put its own house in order and the EU in its place.”
"Over the seven years from 2007-13, the UK paid over £15.4 billionin VATcontributions to the EU, an average of £2.2 billion a year. This amounts to just under 18 per cent of the EU’s annual VAT revenue, despite the UK population being only 13 per cent of the EU whole."