Brussels, 16/05/2012 (Agence Europe) - EU Taxation Commissioner Algirdas Semeta has welcomed the EU27 finance ministers' backing for the EU's new VAT strategy, unveiled by the European Commission at the end of last year (see EUROPE 10612). In a press release, Semeta said the strategy met the demands of ordinary people, companies and tax offices for a full overhaul of the current system to make it easier, more effective and less permeable to fraud. He stressed the importance of improving tax collection because VAT currently provides some 20% of countries' income. If only 10% of the differences between EU member states' VAT systems could be harmonised, then that would boost inter-EU trade by around 4%, he said. The new VAT strategy will focus on levying VAT on more goods and services, introducing reduced rate VAT and setting up new and more effective ways of collecting VAT and clamping down on fraud. Semeta hoped ministers would give the same backing to the operational measures the Commission will be unveiling over the next few months. (FG/transl.fl)