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MPs request VAT refund for air ambulance

Filed under: Air Ambulance Costs and Fundraising — Posted by: Andrew on March 8, 2012

A North based air ambulance service is fighting for its life with fuel VAT costing them over £12,000. Jet fuel VAT is 20 percent, which results in a £24,000 tax payment.

Politicians have made their feelings known through a motion in the House of Commons. An MP is arguing for new rules in the Treasury to make all air services exempt from paying fuel VAT.

There are VAT rules within the European Union preventing any new exemptions being made in the UK.

However, the motion asks all VAT to be returned by the Treasury in the form of a grant, which would achieve the same aim.

37 MPs have signed the motion including Jarrow’s Labour representative, Stephen Hepburn and Sir Alan Beith, of the Liberal Democrat party for Berwick.

A spokesman for the air ambulance charity says that the public are being asked too much when it comes to funding the service and that the government should step forward.

“We are entirely funded by the public, so at these rates, it would be £24,000 of donations that could be redirected from the tax man to paying for more potentially life-saving missions. It would make a huge difference to our fund-raising and relieve some of the stress on our finances at a time when residents of our region are already having to justify every penny and pound that they are spending.”

A spokeswoman from the Treasury says that it is simply impossible to refund VAT to every charity in the UK and it would be unfair to make exceptions to some but not all.

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