Tory Fury at Budget’s EU Stealth VAT

osborne EU

The EU-enforced tampon tax causing a cross-party rebellion isn’t the only example of Brussels stealth tax imposed in this Budget. Following a decision by the Court of Justice of the EU in June last year, the 20% VAT rate was also forced upon “energy saving materials”, previously taxed at just 5%. People who want to insulate their homes are being whacked by an EU tax hike. Worth reading John Redwood on this – it has gone down like a cup of cold sick with Tory backbenchers. 

Other areas covered by the EU’s barmy VAT rules include digital services like Netflix, now charged at the place of purchase. Not only this, British digital businesses selling products in EU member states are subject to local VAT rates, for example Croatian, Danish, and Swedish VAT rates of 25%, or even sky-high Hungarian VAT at 27%.

Osborne announced yesterday “We understand that tax affects behaviour. So let’s tax the things we want to reduce”By his own logic, the EU wants to reduce energy efficiency and online businesses…




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Quote of the Day

Dominic Raab wrote in his letter of resignation…

“This is, at its heart, a matter of public trust,” he told the PM, concluding: “I cannot reconcile the terms of the proposed deal with the promises we made to the country in our manifesto at the last election… I believe that the regulatory regime proposed for Northern Ireland presents a very real threat to the integrity of the United Kingdom. I cannot support an indefinite backstop arrangement, where the EU holds a veto over our ability to exit…”

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