Brussels, 08/12/2004 (Agence Europe) - At this Tuesday's Ecofin Council, the future Luxembourg and British Presidencies of the Council of the European Union (for the first and second halves of next year respectively) have announced their intention of presenting a work programme for reduced value-added tax (VAT) rates.
The European Union of Craft, Small and Medium-Sized Enterprises (UEAPME) and the European Builders' Confederation (EBC) welcome the move. In press releases, both federations stated the view that the application of reduced rates of VAT in eleven Member States genuinely helps SMEs in these countries to create jobs, and also helps the fight against illegal employment. Experience in France, Belgium and Italy has proved the effectiveness of such a measure, the organisations affirm, and therefore call upon the Ecofin Council to continue down this path, in order to establish a permanent list of highly labour-intensive sectors which could apply reduced rates, by the end of 2005.
Hans-Werner Müller, UEAPME Secretary General, nonetheless harshly criticised the "attitude of five Member States [Germany, Austria, Denmark, Sweden and Slovakia] which persist in making life harder for European SMEs in the highly labour-intensive sectors".