Brussels, 24/10/2003 (Agence Europe) - On Thursday the meeting of permanent representatives from Member States confirmed the persistence of disagreements on the future list of goods and services which could benefit from the reduced rate of VAT following the expiry of the current system in December. The question will be on the Ecofin agenda on 25 November.
Germany, Austria, Sweden and Denmark are still opposed to any extension of the list. Portugal and Finland want to keep to the list presented in July by the Commission. The Italian Presidency proposed a partial extension of the list to records and CDs, public building restoration providers, gas bottles, certain repair services for "mobile goods" (such as reparation of push bikes dear to the hearts of the Dutch), landscapers and garden maintenance and hairdressers. The United Kingdom would like to include energy saving materials, Spain would like to add sheets for babies and Greece, motorbike helmets.
The Presidency is also proposing to keep the status quo on the derogations granted over time to different Member States under the form of "zero tax" or "super reduced rates" and "parking rates" by requesting the Commission to present a revision of all derogations in 2006. Germany is requesting that an exact date is set for the end of these derogations. Ireland and the United Kingdom, which are defending their zero rates on children's clothes do not want any revision of these derogations. Luxembourg and Portugal are requesting in the future derogations but still insisting that the draft requests the Commission for a report in 2006.
The Presidency considers that broad consensus exists for Commission proposals on derogations for certain regions in Austria, Greece, France (Corsica) and Portugal (Azores and Madeira). The Commission would like to limit the field of application of special rates to consumer goods and services in these areas to avoid any abuse. France and Portugal are opposed to any revision of the current status.