UK joins France in green tax crusade
UK and France to drive campaign to cut VAT rates on 'green' products
Britain and France have launched a campaign within the EU to slash VAT rates
on products that are environmentally friendly.
The campaign is seen as a major move to combat climate change, but tax
experts have warned that any such moves could be faced with major practical
difficulties and lead to trade discrimination against third world countries, the
FT reports.
Following talks with UK prime minister Gordon Brown, France’s president
Nicolas Sarkozy said the countries would press the EU to make the VAT cuts.
One major problem with the plan could be how to decide what products should
receive the lower VAT rate. Biofuels, for example, help to cut emissions but are
blamed for driving up food prices in the developing world.
Further reading:
‘Green’ reporting: nowhere to hide