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'Cut VAT on repairs to stop people throwing so much away'

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Published Date: 20 August 2008
THE level of VAT on getting goods repaired or serviced should be cut to help to end our throwaway culture, according to a House of Lords committee.
It believes reducing VAT could encourage more people to have items repaired rather than throwing them away, so cutting waste.

The report also suggests the government reduce VAT for products that use sustainable materials.

Lord O'Neill, the form
er Ochil MP who chairs the Lords science sub-committee on waste reduction, said: "We would like to see the VAT regime reformed, so that products that have a long life-cycle, or can be easily and cheaply repaired rather than replaced, are made economically more attractive. This would be an important step in turning away from the 'throwaway' consumer culture we currently have."

The report called for the government to move its focus away from consumers and towards companies in its effort to cut waste – household rubbish accounts for only 9 per cent of waste in the UK.

It backed "eco-labels" to help consumers understand the environmental impact of what they were buying.

Lord O'Neill said: "There has been an impressive increase in recycling of domestic waste in the last few years, but that only represents a tiny fraction of all waste generated in the UK.

"It is time for the government to move its priorities from household waste to the far greater problem of industrial and commercial waste."



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  • Last Updated: 19 August 2008 9:54 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: Environment
 
1

Boy Wonder,

20/08/2008 07:52:16
The House of Lords ... who'd've thought the only sensible advice from the Corridors of Power would come from this lot??
2

hertscot,

20/08/2008 08:16:23
If my DVD player breaks down, it would cost around £40 to have it fixed, I can buy a new one for £25, while goods are so cheap no one is going to pay for a repair that could take weeks, when a replacement can be found at your local supermarket in a matter of hours.

Good idea though.
3

Jacqueline Hyde ,

On the shelf 20/08/2008 09:02:12
A surprisingly good idea but probably unworkable when it comes to VAT returns and collection. Why not increase the VAT on "luxury" goods again (it used to be 25%). This would have the same effect and would be much easier and cheaper to collect.
4

Mad Jock,

East Lothian 20/08/2008 10:15:34
Jacqueline, do you work for the government?It is unfortunate that the Lords, in their wisdom, have simply sown the seeds of a new tax idea in the mind of Gordon "if it moves, tax it" Brown.
Remember, environmental tax philosophy is in the stick only, never the carrot.
5

Alternative (High-Octane) Fuel Head,

Edinburgh 20/08/2008 18:37:46
At the same time, they should harmonise road tax across the board as well. You should pay the same regardless of whatever car you have.

Ramping up road tax for some categories of car in an attempt to get people to ditch them for "modern, fuel efficient" cars is total madness. Far better to keep the original car until it is no longer economical to repair rather than prematurely switching to a new "more efficient" model.

As Mad Jock says, this is all about the stick. The sooner we are rid of this bunch of stupid labour morons the better.

 

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