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APHC CEO calls for 5% VAT rate

APHC’s CEO, John Thompson, has called for the industry to maintain pressure on Government over its calls for a 5 per cent VAT rate on all energy efficiency building and improvement projects

He says that the industry would benefit for a host of reasons: “A reduced rate of VAT to 5 per cent for all energy efficiency improvement projects would have three clear advantages.

“Firstly, it would provide a much-needed boost to the uptake of energy-efficiency products; secondly, it would help kick-start a housing recovery; and thirdly it would clear up the long-standing, ongoing and sometimes heated VAT debate over Energy Saving Materials. Any of these three reasons alone would be enough to justify the cut but with all three together, it makes a compelling case.”

With the Green Deal and RHI finally taking shape, this would also be the ideal time to give both consumers and the renewables industry an additional boost. Awareness and uptake among consumers remains low and it is likely that financial considerations will play a major role in increasing uptake.

APHC is a member of the cross-industry Cut the VAT Coalition, which aims to persuade the Government to cut VAT from 17.5 per cent to 5 per cent on all building repair and maintenance work. While this outcome would be a fantastic result for the broader industry (and a disaster for rogue traders), the Association believes its call for a cut in VAT on energy efficiency projects is more realistic at this moment in time.