Business Standard

Rishi Sunak vows to cut VAT on energy to revive UK Tory leadership bid

Announcing a "winter plan" to address inflation and the cost of living, Sunak's campaign said he would introduce a "targeted, temporary and timely tax cut" by removing VAT on domestic energy bills

Rishi Sunak
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Alex Wickham | Bloomberg
 Sunak has pledged to scrap the value added tax on all domestic energy bills for the next year if he becomes UK prime minister, in a move his leadership rival, Liz Truss, criticized as a U-turn.

Announcing a “winter plan” to address inflation and the cost of living, Sunak’s campaign said he would introduce a “targeted, temporary and timely tax cut” by removing VAT on domestic energy bills if the energy price cap rises above 3,000 pounds ($3,610) as expected later this year.

Sunak’s campaign argued the policy would “bear down on prices,” insisting this contrasted with tax cuts promised

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