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BRC backs MEPs' calls for lower vat on green goods
Archived article dated Tuesday November 18th 2008
As the European Commission begins to review energy taxation, the British Retail Consortium (BRC) and EURO COOP, the European Community of Consumer Cooperatives, are today (Monday) urging the Commission to deliver on MEPs' demands to lower VAT on energy-efficient household products.
The technology and innovations used to produce these goods, including light bulbs and boilers, mean they are more expensive than standard ones. Research has shown price is the main barrier to improving the popularity of these green goods, so reducing taxation on them will play a huge role in making them more popular.
By making low-energy products more affordable, the EU can make a major difference in convincing customers to make green products their priority.
UK retailers are encouraging more environmentally friendly behaviour among their customers by discounting low-energy products, offering recycling facilities and incentives and introducing industry-wide recyclability labelling.
Euro Coop members have long engaged in promoting environmentally friendly behaviour among their consumer-members through educational work as well as by a broad series of marketing initiatives, ranging from the expansion of their ecolabelled own-brand products to the launch of targeted campaigns on energy-efficiency.
Alisdair Gray, British Retail Consortium Brussels Director, said: “Customers want lower prices on energy efficient products. With most people believing the UK is already in recession, customer research shows price is the key factor influencing everyday buying decisions. Retailers are keen to help the EU meet its environmental targets by, for example, offering recycling facilities in stores. By cutting VAT on 'green friendly' household goods the Commission will show it's matching policy with rhetoric.”
Rodrigo Gouveia, Euro Coop Secretary General, commented: “We believe intervening on price through reduced VAT levels for a wide range of low-energy consumption household products would represent a step in the right direction for the EU while it is attempting at driving consumption patterns towards an energy-efficient future. Household products account for 16 per cent of total energy consumption in the EU and 10 per cent of EU greenhouse gas emissions. Consumer cooperatives are doing a lot to educate consumer-members and society at large on the importance of energy efficiency but this hard work needs to be complemented by strong action at institutional level.”
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