The cut should also cover energy efficiency upgrades in homes. The call to Chancellor Rishi Sunak, as he prepares for next month’s Budget, follows the Daily Express Green Britain Needs You crusade. We are urging a shake-up so products that pump out zero, or close to that, emissions pay no VAT.
The cross-party group also backed tax incentives to encourage more take-up of ultra-low emission vehicles.
Tory MP Philip Dunne, committee chairman, said: “The COVID-19 crisis must be treated as a wake-up call.
“It is a symptom of a growing ecological emergency. The economic recovery will shape our national economy for decades to come, and it is crucial that tackling climate change and restoring nature is at its core.
“A tax system fit for net-zero Britain is key. It will encourage innovation, give confidence to the sector and support companies to make the low-carbon transition.
“There are endless initiatives that can lead to a greener future and the Chancellor should use his upcoming Budget statement to start this process.
“Boosting energy efficiency of homes by reducing VAT on retrofits can spur growth in low-carbon manufacturing.”
There would be no vaccine against “runaway” climate change, he added.
Package manufacturer Frugalpac called the report “hugely important”.
Chief executive Malcolm Waugh said a cut would “help fuel the Government’s green industrial revolution”.
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