Brexit could scrap VAT on energy bills, claims Boris Johnson

The UK will be able to scrap VAT on household energy bills if the country leaves the EU. That’s according to Conservative Party members Boris Johnson and Michael Gove who claim […]

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By Jacqueline Echevarria

The UK will be able to scrap VAT on household energy bills if the country leaves the EU.

That’s according to Conservative Party members Boris Johnson and Michael Gove who claim voting for a Brexit will leave energy consumers better off.

In a joint statement published in The Sun they said EU rules don’t allow to take VAT – currently 5% – off gas and electricity bills.

They added: “The least wealthy are hit particularly hard. The poorest households spend three times more of their income on household energy bills than the richest households spend. As long as we are in the EU, we are not allowed to cut this tax.

“When we Vote Leave, we will be able to scrap this unfair and damaging tax. It isn’t right that unelected bureaucrats in Brussels impose taxes on the poorest and elected British politicians can do nothing.”

That’s in contrast to Energy Secretary Amber Rudd claiming that if the UK votes to leave the EU it could increase energy bills by £500 million a year by the 2020s.