DFK UK & Ireland

Committee calls for VAT reform to reduce business waste

Changes to the VAT regime could substantially reduce the amount of waste produced by UK business, according to a House of Lords committee.

In a report released today, the science and technology committee recommends using variable VAT rates to reflect a product's sustainability and thus encourage consumers to buy 'more economically attractive' products.

The committee claims that current policies focus too heavily on curbing household rubbish, which accounts for just 9% of the UK's waste.

Whilst the study acknowledged that changes to landfill tax had gone some way to minimising company waste, it urged the Government to take more action on the issue.

'It is time for the Government to move its priorities from household waste to the far greater problem of industrial and commercial waste,' said Lord O'Neill, chairman of the Lords science sub-committee.

He continued: 'We would like to see the VAT regime reformed so that products that have a long life-cycle or can be easily and cheaply repaired rather than replaced are made economically more attractive.'

'This would be an important step in turning away from the 'throwaway' culture we currently have.'

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