Quote:
Originally Posted by derekgas
(quote andrewb) What I want tomorrow is a massive tax cut on energy saving products. Not only is it good for the environment, but buying energy saving products is a fantastic way to reduce fuel bills which can really help people out financially.
We already have reduced vat on energy saving products, energy efficient boilers for example attract 8% vat, the company buying the boiler pay 8%, but it is still 17.5% to the end user, so it does reduce the invoice to the customer, but not as much as it could if the 8% was for the total job, and not just for the purchase of the boiler, if joe public bought a boiler, I am fairly sure it would be at 17.5%, because the distributors know you cant claim the vat back. Fuel duty at 57p per litre would be the wisest place to cut tax at this present time.
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Thank-you for that, very interesting, I hadn't realised that was the case.
As for the VAT cuts which are going to be announced tomorrow, I do hope they are properly funded tax cuts rather than being backed up by even more borrowing. We're already seeing our pound plummet in value, if it goes too far the rise in prices of imports will out weight the cut in VAT.
We're in this mess because the government allowed the private sector to over borrow, and now it almost seems like we're trying to counter that by over borrowing in the public sector. Time to live within our means.