Strasbourg, 12/03/2004 (Agence Europe) - After a few false starts, the European Parliament has finally pronounced itself in favour of VAT on postal services, adopting the report by Swedish Liberal Olle Schmidt (consultation) on Thursday. The MEPs had initially rejected last December's proposal (EUROPE of 23 December, p.11). The Commission stuck to its text, and so the dossier was referred back to the economic committee, and once again pronounced itself against the rapporteur's opinion, by 18 votes to 12 (EUROPE of 27 February, p.13).
It was exactly the opposite in the plenary: most MEPs refused the proposed rejection (184 in favour, 240 against and 12 abstentions). The EP, therefore, pronounced itself in favour of VAT applying to postal services, by adopting amendments for reducing the impact on consumers: reduced VAT rates, reimbursement of charitable associations, derogation for postal services for less than 10 kilos (instead of 2 kg in the Commission proposal).
This line, defended by the majority of EPP-ED and Liberals, was followed by the French Socialists. Such divergence with the Socialist Group can be explained by the situation of the French postal services, which consider it more financially rewarding to pay the VAT but then to have the VAT reimbursed on costs and provisions.