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UK to remove VAT from domestic electricity bills from Oct. 1
The VAT cut is expected to reduce the average annual household electricity bill by about £45, and it will be funded by scrapping a £1.8 billion digital ID program.
British Prime Minister Andy Burnham said the UK will remove value-added tax from domestic electricity bills starting October 1, part of an early package aimed at easing the cost-of-living pressure.
According to SCMP Economy, the government expects the change to cut around £45 from the average annual electricity bill of about £1,862 for households.
Burnham said bond investors will watch how the support is financed, and he said the VAT removal will be funded by savings from cancelling a £1.8 billion digital ID programme announced on Sunday.
In remarks carried by Reuters, Burnham said the immediate actions may not fully relieve pressure on households facing higher prices, with a longer-term plan to be laid out later this year.