Letter: Vary energy tax

Click to follow
Vary energy tax

Sir: In view of Michael Meacher's evidently strong support for a sustainable energy policy (letter, 10 March), I hope he will vigorously oppose the Labour Party's current policy of reducing value-added tax on energy.

There is an evident need to increase the cost of energy to consumers, so as to encourage increasing efficiency of use, and reduce demand. At the same time, it is essential not to increase the financial burden on those least able to pay, who are often stuck with poorly constructed, energy-inefficient housing.

There appears to be a straightforward way to achieve both aims. This is to set an initial consumption amount per year which would be taxed at a low rate of VAT (say, zero), for each domestic customer account. All energy consumed above this amount would be taxed at a higher rate (say, the standard rate of 17.5 per cent).