Shepherd admitted higher energy costs would be a hard sell to the public, but said it was not unthinkable. Part of the revenue could be generated by a carbon tax that took the place of VAT, so that the cost of an item took into account the energy and carbon footprint of a product.

Why not just charge standard VAT on energy?

Ah, yes, that\’s right, because the special low rate was intorduced by Gordon Brown, wasn\’t it…..

2 thoughts on “Why?”

  1. What about products that are not made here?

    I actually like the idea of carbon taxes, but I think the revenue should be used to reduce income taxes, especially on the low paid.

  2. That special rate on domestic fuel was introduced by Norman Lamont. It was 17.5%

    As soon as Labour came to power they dropped it to the lowest rate possible under EU rules (yes, yes I know about the EU) which is 5%

    Oh and by the way, the low paid don’t pay much in the way of income tax, but they would have to pay the carbon tax or freeze to death.

    Yay for progressive taxation!

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