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Could the European taxman kill the Green Deal?

As reported by Utility Week at the end of June (but only picked up by the BBC and publicised by ministers in September), the European Commission has accused the UK government of being in breach of the European Union VAT Directive by charging only 5 per cent (rather than the standard 20 per cent) VAT on certain energy efficiency products. Brussels is threatening to take the UK government to court to force it to raise VAT to 20 per cent on those products. The government has committed to fighting its corner should the matter go to court.

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