Lawther dismayed by solar VAT

12.00.00am BST (GMT +0100) Sat 22nd Oct 2005

Antrim Alliance Councillor Alan Lawther has said charging tax on carbon dioxide reducing energy installations makes a mockery of the Government's claims to be pro-environment.

The Antrim South East representative stated:

"I have been investigating the fitting of solar water heating for housing and am dismayed to find when the house is not a new build dwelling, VAT is charged on the installation. This seems to be the case for other alternative energy generation measures which reduce carbon dioxide emissions.

"The government has set itself tough targets to reduce these emissions which are said to contribute to global warming. Why does it then impose a tax on owners of older houses when they try to be green?

"Older houses are more likely to be using more oil or coal or gas for their heating than new-build houses as they were built under regulations which required less insulation, and so if they used greener forms of heating less carbon dioxide pollution would occur. This clearly makes a mockery of the Labour Government's claims to be pro-environment.

"I have written to the Chancellor of the Exchequer to highlight this situation to demand that he also exempt older houses from VAT on environmentally friendly installations.

"Environment-friendly installations must be encouraged in every way possible. Removal of VAT would be an important step."

ENDS