Local view for "http://purl.org/linkedpolitics/eu/plenary/2005-12-01-Speech-4-020"
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"en.20051201.3.4-020"2
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"Mr President, we are currently faced with a situation in which VAT rates vary widely within the European Union. The Member States have different standard rates, different reduced rates and different rules for applying these rates. The end result of all this is price distortion within the European Union. These different rates also have a negative impact on resource allocation and, in the long run, reduce the EU’s growth potential.
At the same time, however, many doubts have been raised over whether VAT rates need to be harmonised, and indeed we have heard such sentiments voiced today in this Chamber. As I see it, the time has come for us to hold a serious and comprehensive debate on the tax system in the European Union. I would suggest to the Commission that it should undertake a detailed study of the impact, whether positive or possibly negative, of a gradual EU-wide approximation of VAT rates and their application. We need sound analytical data as a basis for serious consideration of this matter.
Moving on to reduced VAT rates for labour-intensive services, I should like to reiterate the point that these rates were introduced six years ago on an experimental basis. I am genuinely astonished that the Member States have not yet been able to assess the results of this experiment.
The current state of affairs leads to blatant discrimination against the new Member States in this field, and it must not be allowed to continue."@en1
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