§ Mr. DobsonTo ask the Chancellor of the Exchequer on what grounds VAT was imposed on fuel and energy from 1 July 1990; and in what circumstances it is imposed.
§ Mrs. Gillian Shephard[holding answer 19 July 1991]: The standard rate of value added tax was applied to fuel and power for non-domestic use from 1 July 1990. This followed a judgment of the European Court of Justice in 1988 that zero rating by the United Kingdom of fuel and power other than to final consumers was contrary to European Community law. Fuel and power for domestic use, and also for use by a charity for its non-business activities, remains zero-rated.