Wilson – VAT should be axed from electricity bills

Mr Wilson said,

“Axing VAT from energy bills would be the easiest way to help households as it would keep money in people’s pockets rather than having to administer a support scheme. We must remember that as the unit price of electric increases, people will still pay 5% in VAT. Therefore 5% of the tariff last year will be considerably less than 5% of the 2022 tariff.

The Government has backed away from plans to axe VAT because to do so in Northern Ireland would place Treasury on a collision course with the NI Protocol.

With cost of living increases challenging households in every demographic, including those with two full-time wages, the Government should ditch any NI Protocol worries and scrap the VAT element of electricity bills which would give everyone an immediate 5% saving.”