VAT on fuel
Jun 28, 2012
Bishop Hill in Economics, Energy: costs, Tax

UK readers will be aware that VAT is levied on energy at a reduced rate of 5% - regardless of the source of the energy.

Here is how National Geographic describes the situation.

A reduced value added tax levied for the use of natural gas for heating fuel and power amounted to a subsidy of $ 2010. The UK also levies a reduced value added tax for petroleum and coal on a smaller scale.

Wow. That's quite a misrepresentation isn't it?

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