AITI Chartered Tax Adviser

VAT and the climate crisis

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The standard rate (23%) applies to bicycles. [1]
The zero rate applies to jet fuel. [2]
Aircraft add tons of carbon dioxide to the atmosphere on a daily basis.
Does it make sense to be subsidising polluters with a zero VAT rate?

1 VATCA 2010 s 46(1)(a)
2 VATCA 2010 Sch 2 para 4(5)

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