Local view for "http://purl.org/linkedpolitics/eu/plenary/2003-12-04-Speech-4-109"

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"en.20031204.6.4-109"2
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". The proposal to streamline rates should be seen in the context of the process currently underway to establish a definitive VAT system, based on taxation in the country of origin and on a harmonised timescale, with the least number of derogations possible, for taxation rates in the various Member States. This idea, which has been put forward by the Member States with a view to the potential effects on their tax policy, enjoys the support of the European Parliament, although it is strange that, in this case, Parliament has adopted a more realistic stance, in particular by taking the view that this is not the time for greater harmonisation and by supporting the Council’s intentions to extend the experimental application of reduced VAT rates in certain labour-intensive services. Commissioner Bolkestein refused to present this extension at the last Ecofin Council meeting of 25 November. On the subject of reduced rates, however, and bearing in mind the concept of tax sovereignty, it should be recalled that the Member States must maintain the necessary flexibility in implementing social and cultural policies, in particular when setting reduced VAT rates. Next, since a minimum rate already exists, the Member States must have the power to set rates in line with their policy options as regards tax redistribution and the funding of national budgets."@en1

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