EUROPE MUST OVERRULE IMPORT TAX ON ENERGY SAVING LIGHBULBS

14 September 2007

Retailers are calling on EU countries to reject a proposal to extend import duties on low energy light bulbs from China.

Two weeks ago the EU Commission decided to put forward a proposal to extend the duties by one year. The decision was the result of intense pressure from Germany, which hopes to protect the interests of Osram, a German owned company which produces its own brand of energy efficient light bulbs. If EU countries fail to reject the proposal the tax will continue to add 66 percent to the dockside price of every energy efficient light bulb imported from China.

The British Retail Consortium (BRC) is urging EU member countries to reject the proposed extension on the grounds that it is blatant protectionism, which only serves to shield a single inefficient European manufacturer against legitimate competition. A further extension of this import tax will force consumers to pay more for an energy efficient product which will help the EU meet its Energy Efficiency Target, which aims to reduce energy use by 20 percent by 2020.

BRC Director General Kevin Hawkins said: “The European Union needs to decide which it is more interested in, achieving its environmental targets or protecting the narrow self interests of a single company. Retailers are doing everything they can to make energy efficient products affordable but they are being hampered by an import duty which adds 66 percent to the dockside price of low energy bulbs from China. EU countries must not extend this unjustifiable tax.”

The BRC is campaigning for the reduction of VAT on low energy light bulbs and other energy efficient products. It believes cutting VAT and import duties would put energy saving products within reach of more of Europe’s population.