Local view for "http://purl.org/linkedpolitics/eu/plenary/2011-10-13-Speech-4-009-000"
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"en.20111013.3.4-009-000"2
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"Madam President, I would like to thank the European Parliament and, in particular, Mr Casa, for his positive and constructive report on the Green Paper on the future of VAT.
When this Commission began its mandate, we felt that the time had come to have a fresh look at the European VAT system, which has now been in place for over 40 years. It is indeed high time to develop a new and modern VAT system – fully compatible with the single market and with newly emerging business models – which should continue to ensure and even improve its role as a revenue raiser in the long term.
The Green Paper on the future of VAT presented in December 2010 constituted the first step in this process. The overwhelming reactions from stakeholders confirmed that there was a need for such a debate. More than 1 700 written contributions were submitted. They generally confirm that the current VAT system is too complex and burdensome, primarily because of the existing divergences across the EU. This is quoted as a major obstacle to maximising the benefits of our internal market, in particular, for smaller businesses. One conclusion that can already be drawn is that our initiative has created considerable expectations. Indeed, fundamental changes to all major aspects of the VAT system are advocated by business stakeholders as well as the general public.
The next step in this process of reforming VAT will be a communication to be presented before the end of 2011, identifying a comprehensive strategy for a stable and long-term VAT regime. Clearly, it will not be possible to tackle all aspects of VAT at once. The communication will set out the ultimate objectives to pursue and make a distinction between those areas in which progress can be made in the short term and those areas which will still require more substantial work and in which results can only be expected in the longer term.
In the forthcoming debate of the College on its work programme for 2012, I will propose new initiatives directly linked with one of our main priorities, namely, consolidation and sustainable growth. In this framework, concrete proposals will follow the new VAT strategy. They will cover issues such as a rapid reaction mechanism, VAT governance with the business community and a reduction in the administrative burden for businesses.
The opinion of Parliament expressed in this report often reflects the view of the stakeholders. It is also ambitious. For the Commission, this is positive and encouraging. I can already assure this House that its opinion will be given full consideration."@en1
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