Who proffits most from your energy bills?

MotorHomer

A lot of talk about how much profit the energy companies are making.

The government makes more in tax from our bills than the energy companies make from us.

VAT is charged, albeit at a reduced rate on energy but not on most food products. How can this be right. Is gas and electricity a luxury product?

Come on Cameroon, reverse Gordon Brown's decision and remove tax from fuel!

worried_jim

MotorHomer wrote: »

VAT is charged, albeit at a reduced rate on energy but not on most food products. How can this be right. Is gas and electricity a luxury product?

Schools and hospitals don't build them selves.

MotorHomer

Don't get me started on that one Jim. The NHS do not charge non-nationals for treatment which would cover the cost of new hospitals.

With all the increases in tuition fess, that should cover the cost of schools, rather than line the lecturers pockets.

apt

MotorHomer wrote: »

A lot of talk about how much profit the energy companies are making.

The government makes more in tax from our bills than the energy companies make from us.

VAT is charged, albeit at a reduced rate on energy but not on most food products. How can this be right. Is gas and electricity a luxury product?

Come on Cameroon, reverse Gordon Brown's decision and remove tax from fuel!

VAT on energy has nothing to do with Gordon Brown. You can thank John Major whose government introduced VAT on energy at the full rate. The following government reduced it to 5% which is the lowest allowed. It is not possible to go to a zero rate once VAT has been introduced.

MotorHomer

apt wrote: »

VAT on energy has nothing to do with Gordon Brown. You can thank John Major whose government introduced VAT on energy at the full rate. The following government reduced it to 5% which is the lowest allowed. It is not possible to go to a zero rate once VAT has been introduced.

What planet are you on? There are 2 zero rates. Non-VATable and exempt. The government can charge what tax they like on whatever they see fit. Surely tax should be progressive as opposed to regressive?

zagfles

VAT isn't really the problem, the problem is the hidden "taxes" in energy bills eg to pay "social tariffs", the "warm home discount" and to subsidise feed-in tariffs where people with big south facing roofs install solar panels and are paid way over the market rate for the electricity they produce. All paid for through your energy bills.

Nada666

And giving free boilers and insulation to landlords (eg https://forums.moneysavingexpert.com/discussion/4803268).

NittyGritty

they should take a note out of petrol/oil prices, when they fall garages/supermarkets cut prices, its a shame they don't do the same, rather than ALWAYS putting prices up

DragonQ

Governments don't make profits.

NittyGritty

zagfles wrote: »

VAT isn't really the problem, the problem is the hidden "taxes" in energy bills eg to pay "social tariffs", the "warm home discount" and to subsidise feed-in tariffs where people with big south facing roofs install solar panels and are paid way over the market rate for the electricity they produce. All paid for through your energy bills.

I disagree on vat, elec /gas is essential so vat should be removed completely, and should never have been introduced on bills, if they remove the green taxs, plus vat, bills would drop somewhat and ease the pressure on people.

all the government are doing are trying to squeeze every last penny out of us, just look at the pathetic pasty tax, and 3 bedroom taxes, the latter hasn't saved money its actually cost MORE, so much for saving hey

zagfles

NittyGritty wrote: »

I disagree on vat, elec /gas is essential so vat should be removed completely, and should never have been introduced on bills, if they remove the green taxs, plus vat, bills would drop somewhat and ease the pressure on people.

all the government are doing are trying to squeeze every last penny out of us, just look at the pathetic pasty tax, and 3 bedroom taxes, the latter hasn't saved money its actually cost MORE, so much for saving hey

They can't reduce VAT as it'd be against EU rules. As said above.

At least VAT is an honest, open tax which you can see exactly what you're paying on your bill, unlike the hidden green and social taxes. If the govt want to subsidise solar panels and schemes to help those on low incomes with insulation and discounts, fair enough, but do so through normal taxation rather than by increasing the cost of energy for everyone else, and trying to pass the blame onto "greedy energy companies".

Just like schemes to help poorer students (bursaries etc) which are funded by other students paying higher tuition fees. Dishonest taxation, so typical of New Labour, which this govt seem to be doing nothing to reverse.