Ministers are urged to eliminate VAT on repaired and refurbished electronics to aid households in reducing expenses and to minimize e-waste. Currently, refurbished electronics in the UK face the same VAT as new goods, which impacts consumer choice. Advocates assert that lowering VAT would make refurbished options more accessible, addressing financial concerns for consumers. Repair services need to become more convenient to compete against the instant access provided by online shopping. Emphasizing affordability in the repair sector is crucial for increasing consumer demand and promoting sustainable choices.
Removing VAT on repaired electronics should be part of a wider push to cut waste, extend the life of products and develop a truly circular economy. Currently, refurbished electronics sold in the UK are subject to the same VAT rate as new goods, which discourages their purchase vs. new electrical products.
Cost remains the number one deciding factor influencing whether consumers choose refurbished electronics over new. If we want to reduce e-waste by making refurbishment the norm, refurbished products must be as accessible as possible to consumers.
Repair can feel slow, uncertain or inaccessible compared to the instant convenience of ordering new products online, which becomes a major barrier to consumers considering repair options.
If you could get the same item for half the price from a reputable repair system, you'd see a huge upturn in demand. Lowering prices through VAT cuts would directly benefit consumers and promote sustainable choices.
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