Peer Steinbrueck, German finance minister, gave a clear indication Germany
was unlikely to back a plan proposed by EC earlier this week which will allow EU
member states to reduce VAT on certain goods and services.
The EC plan proposes to amend the EU VAT directive to enable member states
reduce VAT on labour-intensive services and locally supplied services
permanently, such as restaurants and hairdressers, Tax-News.com
However, speaking to the proposal this week, Steinbrueck complained member
states had not been adequately consulted and suggested the commission had not
thought the idea through thoroughly enough.
He warned that, cutting rates of VAT to as low as 5% on these services, as
proposed by EC, would reduce his government’s tax revenues by more than €3.5bn,
‘That’s not something that you could ever describe as peanuts,’ he said.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states