Local view for "http://purl.org/linkedpolitics/eu/plenary/2006-09-25-Speech-1-050"

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"en.20060925.12.1-050"2
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"Mr President, the assumption is that donations to organisations working for the public good will help the needy. Unfortunately, Community VAT legislation currently in place in Poland is actually serving as an effective deterrent to potential donors. There has been a steady decline in the number of donors since the act on VAT was amended to bring Polish legislation into line with Community provisions. In the past, a taxpayer who made goods over to the needy free of charge had to calculate the tax due on their actual value. Now, however, he or she has to calculate the tax due on the purchase price. As a result, someone who makes a gift of a computer that is several years old has to pay the same amount of tax as if it were new, even though donated goods are worth much less when they are passed on than the price on the original invoice for their purchase. Indeed, it is often the case that the market price one could get for these goods is less than the tax that has to be paid when they are gifted. The decision to tax gifts runs counter to the very notion of helping the needy. Often absurd situations arise, when people prefer to throw out food or items that are still usable rather than give them to the needy, because it is cheaper and safer to do so, and saves trouble with the Inland Revenue. If this repressive legislation is not amended and the state continues to penalise donors for their generosity, we shall witness growing indifference towards the most needy."@en1

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