TaxPersonal TaxLords committee wants to scrap VAT on electrical goods repairs

Lords committee wants to scrap VAT on electrical goods repairs

Abandoning VAT charges for repairing fridges and TV’s will ease pressure on landfill sites

The cost of repairing electrical goods such as TVs, fridges and vacuum
cleaners should not be subject to VAT to discourage people from dumping their
old equipment, a government committee has recommended.

The House of
Lords Science Committee
said that more and more faulty electrical goods are
simply being replaced with new models as customers are not prepared to pay the
high costs of repairs when new appliances are getting cheaper. Scrapping VAT on
repairing these goods would encourage people to retain the goods for longer and
reduce the amount of waste going to landfill sites, the committee argues.

Costs of repairing a vacuum cleaner can be up to £50, TV’s, cameras and
computers are often more than £100 while calling in a plumber or electrician for
a faulty fridge or washing machine can be even more,
The
Times
reports.

Further reading:

Scrapping zero VAT rate will
help poor families, says IFS

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