asked the Minister for Finance if he will consider introducing a value added tax rebate on smokeless fuels as an immediate method of encouraging the use of non-pollutant fuels.
67.
Written Answers. - Smokeless Fuels.
36.
asked the Minister for Finance if he will zero rate smokeless fuels in order to make the price more competitive for householders in view of the ongoing problem of smog in large urban areas; and if he will make a statement on the matter.
I propose to take Questions Nos. 36 and 67 together. In common with other fuels used for domestic heating, smokeless fuels already have the benefit of the low 10 per cent rate of VAT. Such fuels are, of course, generally more expensive on a pre-tax basis. There is little scope, therefore, for creating a significant tax incentive for their use through a tax rebate scheme, quite apart from the practical costs and difficulties such a scheme would involve. Total zero-rating for VAT purposes would be prohibited under EC law. I have no plans, therefore, for a change on the lines requested. I would point out that the creation of smoke control areas is being directly grant-aided by the Minister for the Environment.