7:40am Friday 31st July 2009
By Allan Tunningley
THE Government is under mounting pressure to refund up to £150,000 paid in VAT each year by mountain rescue teams following the intervention of a European commissioner.
Rescue leaders have told the Treasury to stop hiding behind EU rules after Laszlo Kovacs, the European Commissioner for Taxation and Customs, said there was no regulation forbidding repayments.
Treasury minister Stephen Timms had previously insisted the Government’s hands were tied by VAT regulations.
In a letter to Mountain Rescue England and Wales, Mr Kovacs said while exempting teams from VAT was not allowed there were ‘other, and more effective, tools . . . available to members states to help organisations such as mountain rescue teams’.
He said: “This could, for example, take the form of direct subsidies compensating partially or totally the cost of VAT on their purchases.
“Such tools are entirely a matter for individual member states and do not depend upon European Union legislation.”
Mountain rescue leaders said the VAT paid by individual teams ranged between £125,000 and £150,000 a year. They also claimed other taxes such as Vehicle Excise Duty and road fuel tax added tens of thousands more to their annual tax bill.
The total tax take was so high, it accounted for between 35p and 45p of every pound raised by mountain rescue teams.
Stewart Hulse, an Ambleside-based member of the Mountain Rescue England and Wales finance committee, described Mr Kovacs’ comment as ‘a mind-blowing statement’.
“The Government said they could at no time give the VAT back to MRTs because European law prevented them from doing so,” said Mr Hulse. “Now ministers have no more excuses; they have no more places to hide.”
Under EU rules, rescue teams can claim VAT back when they buy specialist medical equipment or vehicles capable of being used as ambulances. But they cannot do so on other essential items used in rescues such as high-spec waterproofs and boots. Even VAT on ropes, head torches, helmets and batteries cannot be reclaimed.
Andy Simpson, who is also on Mountain Rescue England and Wales finance committee, said: “We hope the Government will now talk to us about how best to refund the VAT to mountain rescue teams.
“It could either be given in a block grant to the national committee which could then buy equipment for the 56 teams or be refunded to individual teams based on the VAT they have paid. I can’t see it being a difficult thing to to organise.”
Other European rescue teams do not have the same problems as in Britain because they are either fully professional or semi professional organisations, funded either by grants from their Governments or by insurance.
No minister at the Treasury was available for interview.
l Prince William has praised the Lake District’s 12 mountain rescue teams during a visit to the area.
“These men and women are unsung heroes,” he said. “They are up and down these mountains rescuing people with broken legs every day.”
Team leaders from Mountain Rescue England and Wales, for which William is patron, arranged his expedition.
Prince William’s climbs Helvellyn P 9 Comment P12
© Copyright 2001-2012 Newsquest Media Group
http://www.thewestmorlandgazette.co.uk/trade_directory/