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RHS Urges VAT To Be Dropped On Flowers

Thu, 22 May 2008

The Royal Horticultural Society (RHS) has urged Britain and the EU to reduce VAT on flowers and seeds, as well as on other green goods.

The charity yesterday said it was "an anomaly" that the EU was planning to introduce proposals this summer to cut VAT on goods with environmental benefits, including the most efficient cars, lightbulbs and solar panels, but with the exclusion of plants and seeds which are essential for wildlife and the environment .

The proposals for reducing VAT on green goods within the EU are believed to have the backing of the Prime Minister Gordon Brown.

Under current tax law, food plants and seeds attract no VAT but ornamental plants and seeds are classified as standard-rated items, incurring a 17.5 per cent rate of VAT .

Speaking at the launch of its campaign to reduce the VAT on seeds and ornamental plants to 5 per cent, the RHS said that the European Commission and the Government had overlooked the role that flowers and shrubs play in "providing food for pollinating insects, habitats for other wildlife, improving the local environment and fixing carbon dioxide".

A spokesman for the RHS commented: "If we only grew food plants the world would be an impoverished place, because the pollinators would not exist for agriculture and there would be far less biodiversity."

The society's proposals were launched at the Chelsea Flower Show and will be available for members of the public to sign at other shows this summer.

The RHS said that a successful petition would enable the plant-buying public to save around £175 million a year.

However a Treasury source said: "It is unlikely there would be a VAT discount for seeds or ornamental plants . The policy we have on VAT and environmentally friendly products is aimed at reducing emissions and providing incentives for cleaner products ."

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