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krystian
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 Poland says still opposes EU VAT deal
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Poland on Monday upheld its objection to a European Union agreement on keeping lower value added tax on some services, effectively blocking a deal that requires unanimity.
EU President Austria is proposing to extend by five years an arrangement which expired last year that allows VAT on selected services like hairdressing or home repairs in several member states to be kept lower
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than the minimum rate of 15 percent.
Poland's finance ministry argued in a statement on Tuesday that it would be unfair if old countries see their special rates prolonged while the brief exceptions Warsaw agreed during accession talks expire by the end of 2007.
"The government upholds a negative stance on the project proposed by the Austrian presidency," the ministry said.
"In our opinion, the most obvious correction to the project is shortening the derogation (exemption) period given to other countries to the end of 2007," it said.
The ministry was not immediately available for comment.
The Czech Republic and Cyprus, the two other EU countries that opposed the Austrian proposal last week, dropped their objections at the weekend, before an administrative deadline for deciding whether to accept the deal.
The EU earlier on Monday gave Poland more time to decide its stance after the worst disaster in almost two decades hit the country on Saturday, when the snow-laden roof of a trade fair hall in the city of Chorzow collapsed on a crowd underneath.
If a deal is not agreed, VAT rates in nine "old" member states will have to be raised and the European Commission, the EU executive, would have to start infringement proceedings against any country failing to increase the taxes.
The commission had threatened to start infringement proceedings against the nine old EU member states that still charge the lower VAT rates if there was no agreement to extend the expired arrangement by Sunday night.
But on Monday, a commission spokeswoman said such a decision could only be taken by all the commissioners at their next meeting on Wednesday.
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 Posté le: Mer Fév 01, 2006 10:38 am
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