Question
To ask the Secretary of State for Energy and Climate Change pursuant to the oral contribution of 2 December 2013, Official Report, column 632, on energy bills, what the evidential basis was for his assertion that abolishing VAT on household energy bills would be illegal.
Answer
Value added tax (VAT) is a tax paid on goods and services bought in the European Union. The reduced VAT rate of 5% that applies to gas and electricity in the UK is the lowest permissible under the EU VAT directive.