Dispute over energy policy

Two bills presented to the finance committee reveal a conflict of interest regarding the national energy policy.

Both bills are about VAT exemptions for heat pumps. One comes from opposition party Javnaðarflokkurin (the Social Democratic Party) and the other from finance minister Jørgen Niclasen, of Fólkaflokkurin (the People’s Party).

Heat pumps are currently exempted from VAT, but this scheme is only valid until the end of this year. The government wants to extend the scheme by one year, while the opposition wants to extend it for four years.

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The government says it has big plans regarding energy and the environment, which is why it advises against extending the VAT exemption on heat pumps for more than one year, as other energy and environmental regulations are in the making.

Since the VAT exemption on heat pumps was introduced almost two years ago, 113 citizens have received a VAT refund on their heat pumps and the installation costs.

The total VAT refund figure for heat pumps is DKK 2.4 million, with an average refund amount of DKK 21,100.

Translated by prosa.fo