EU to Urge Countries to Reduce Taxes on Electricity Bills

The European Commission will recommend that EU countries lower taxes on electricity bills in a bid to improve the bloc’s business competitiveness and relieve households.

According to a draft document seen by Bloomberg, the commission will recommend lowering value-added tax and removing non-energy-related levies and excise duties from electricity bills.

“Reducing electricity taxation can make a real and immediate difference, notably for energy-intensive industries and vulnerable consumers,” according to the document, which is subject to change.

The commission will recommend EU countries lower VAT to 5%, as low as legally possible in the bloc, reasoning that ...