Local view for "http://purl.org/linkedpolitics/eu/plenary/2004-01-15-Speech-4-056"

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"en.20040115.3.4-056"2
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". On 23 July 2003, the Commission published a proposal on the reform of the system of reduced rates of VAT, with the aim of streamlining the system, as part of a move towards a definitive regime that would discontinue the experiment of applying reduced VAT to certain labour intensive services (Directive 1999/85). This proposal was rejected by Parliament in December 2003 and the Council failed to reach a unanimous decision on the proposal. The Commission has therefore been obliged to table a proposal to extend the current experiment for a further two years until the end of 2005, and this deserves our support. We can thereby ensure tax flexibility for Member States, who must retain freedom of choice when it comes to implementing the social and cultural policies that cover the possibility of applying reduced VAT to certain sectors. Within the context of the internal market, tax harmonisation is indeed a bad idea, with repercussions for the ways in which Member States finance their budgets. This is especially true of a country such as Portugal where, in 1998, 22% of State revenue came from VAT and reduced rates of VAT accounted for 37% of VAT-generated revenue in the sectors concerned. It is important now, at the end of the legislative period, to carry out an evaluation of the directive before us."@en1

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