Fuels: VAT Zero Rating

(asked on 8th September 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make it his policy to hold discussions with (a) Cabinet colleagues and (b) stakeholders on the potential merits of zero-rating VAT on domestic fuel.


Answered by
Richard Fuller Portrait
Richard Fuller
This question was answered on 22nd September 2022

The Government has announced a new 'Energy Price Guarantee' to limit the price suppliers can charge customers for units of gas and electricity. This will save the average household £1,000 a year based on current energy prices from October.

In recognition of the fact that families should not have to bear all of the VAT costs they incur to meet their needs, domestic fuels such as gas, electricity, and heating oil are already subject to the reduced rate of VAT at 5 per cent.

Reticulating Splines