The Telegraph reports the Treasury reacted angrily to a European Commission proposal for simplifying the VAT regime across the EU that would give tax breaks to the French while penalising British parents. Frits Bolkestein, the EU’s Dutch tax commissioner, admitted that the tax on children’s clothing could rise to 17.5 per cent – the British rate of VAT – but that the move was necessary to end what he said was unfair economic distortion.
The scheme unveiled yesterday is part of the continuing attempt by Brussels to force through tax harmonisation – standardising tax rates across the EU. Gordon Brown has rejected the suggestion, claiming that taxation is a matter for national parliaments.
The Commission scheme to “streamline” VAT would abolish zero-rating on children’s clothes and shoes in Britain and Ireland, ending the permanent opt-outs the countries secured when they joined the EC in the 1970s.
But following intense lobbying by Jacques Chirac, the French president, for a special exemption on restaurant bills, the Commission proposes to cut VAT rates for French diners from the present 19.6 per cent to as low as 5.5 per cent. Also, the Dutch will retain a zero rate for their cut-flower industry and the Italian media empire of Silvio Berlusconi will be spared VAT on broadcasting.
One official described the horse-trading behind the scenes as shameful.
Isn’t it interesting that a Dutch commissioner, a French director-general, and the Italian presidency all got what they wanted?
Quite.
having seen the tantrums of several British children in the last few (hot) days, I and several others have some sympathy with penalising british parents.
Anyway, as any phool kno, the cost of producing children in britain is not economically viable. Cheaper, quieter and more industrious models can be bought from the continent and without all the side effects (and health risks) of pregnancy.
So why should our taxes subsidise parents, let them pay 17.5% like the rest of us. It might cool their reproductive impulses. Remember – market forces rule.
I think I’ll go and lie down now…
Let them get on with it, I say.
The sooner the EU sh** really hits the fan with ordinary voters, the better.
The point about who got their way and who didn’t is interesting though. So much for our much-vaunted “influence”. As usual.
OUT NOW!
And of course commissioners swear an oath on taking office that they will act for the good of all in the community, and not for narrow nationalistic interests.
Yeah, right.
The spanish blew this one out of the water in last years fishing re-negotiations, and obviously from now on it’s a free for all.
Still anything that hastens the demise of the LEUnacy is to be welcomed.
Gabriel Syme writes:
“…ending the permanent opt-outs the countries secured when they joined the EC in the 1970s”
And therein, ladies and gentlemen, lies the single fact one needs to know about the lying toads who run the EU. ‘Permanent’ eh?
They negotiate a ‘permanent’ agreement with absolutely no intention of allowing it to last a moment longer than their ability to welch on it at some later date.
Would anyone but either most naive of fools, or someone who was in secretly in agreement with their policies, ever sign an agreement with them?
Cooper: welch? Are you allowed to say that? Don’t you mean gyp?
Ummm…oh, dear.
What would happen I wonder if a British government simply announced it was going to stop collecting all VAT tomorrow, and would levy a simple ten per cent sales tax on all retail business? Simpler to collect, simpler to understand, less fuss for businesses.
What would our European ‘partners’ do, exactly? Throw us out? How do they do that? Impose tariffs on British trade within the EU? How?
Hmmm … anytime I read about the EU and tax harmonization, I interpret that to mean “bring everyone’s tax up to the same confiscatory level”!
I interpret that to mean “bring everyone’s tax up to the same confiscatory level”!
But with exemptions for the French, of course.
I don’t mean to frog-bash, but I find it impossible to recite the facts about the EU without giving the impression that the French are abusing it.
Oh please stop whinning all the time against the EU vampires & the bloodsucking Frogs.
You wanna get something interesting & be better off?
Just join in the Eurobusiness in Bruxelles & try to secure good deals instead of staying out & recriminating bitterly & nattering endlessly.
I interpret that to mean “bring everyone’s tax up to the same confiscatory level”
Yes, they never seem to harmonize the rates down, do they?
“Just join in the Eurobusiness in Bruxelles & try to secure good deals instead of staying out & recriminating bitterly & nattering endlessly.”
This assumes the Brits would be better off in the EU than out. I believe that assumption is not widely held. Given the recent reports of corruption in the EU (secret bank accounts, bogus contracts, millions missing), I can see why.
The ‘exceptions’ for certain countries will continue.
That’s a good thing, actually. Perhaps the UK public will awaken to the fact the EU is fairer to ‘some’ than others. The ‘some’ also happen to obtain exceptions on a variety of things, leaving ‘some’ more equal than ‘others’.
Of course, you should never question those who “know best what’s good for you”. You don’t want to be accused of being unsophisticated like the US!! Obey and don’t question the wisdom that’s enshrined in the great minds of the Eurocrats.
One day, it will all become clear. (Yeah .. like the fact you are getting screwed!!)
“So why should our taxes subsidise parents, let them pay 17.5% like the rest of us. It might cool their reproductive impulses. Remember – market forces rule.”
Mad dog barker, what does VAT have to do with ‘market forces’? Perhaps you will be able to tell me after you have had a lie down.
Chris,
“Perhaps the UK public will awaken to the fact the EU is fairer to ‘some’ than others. The ‘some’ also happen to obtain exceptions on a variety of things, leaving ‘some’ more equal than ‘others’ ”
That’s the best joke of the year!
You want to stay out of the EU. Fine.
At the same time you want ALL the benefits regular members fight hard to get. Fine.
One day you’ll have to choose.
Stop annonating: either you don’t want the EU & you don’t give a f*** about your neighbours’ fiddling in Brussels; or you want a share of the cake & you drop your eternal, deathboring hesitating.
T. Hartin,
“This assumes the Brits would be better off in the EU than out”
I haven’t a clue about that >>> it’s up to you.
BUT JUST DO SOMETHING !!!!
“At the same time you want ALL the benefits regular members fight hard to get. Fine.”
What benefits? Britain (or any country for that matter) doesn’t have to belong the EU or EFTA or NAFTA to get any of the trade benefits. All member countries of those organisations are also fully paid up members of the WTO which takes care of that without bendy banana or parma ham type bullshit.
Kodiak,
If you’re becoming so bearish about watching how a debate is conducted in a democratic society, perhaps you should frequent French blogs more often and this one less.
I wonder how poor, desperate, miserable little Switzerland is managing to cope without all these ‘benefits’?
Britain gets the ‘benefits’ of the EU? That is like describing a prison sentence as ‘housing benefits and free food’…
Perry, don’t forget the free health club, TV, cable, library, etc.
Perry + Sandy,
So why doesn’t your government make a real choice once in his life & say bye-bye to Eurocracy?
It’s an option. You could make an FTA stuff with whom you want.
And this would be a non-issue on the Continent.
Kodiak,
Because our political classes are committed to this stupid project.
We are trying to change things.
Kodiak:
I don’t have to worry about my country being in the EU. I live in the country it wants to complain about (the US).
My interest in the EU is twofold: concern for the UK and concern for Europe. I think the EU, as it’s planned now, will suck the economies of member nations dry. Plus, it will make it harder for member nations’ business to grow due to all the red tape.
In addition to the economic concerns, I’m absolutely amazed at how these great nations, with long proud histories are yielding up their national sovereignties.
In short, I see a recipe for disaster. Since Europe doesn’t have the best track record when it comes to wars, I’m concerned one may start over this.
I *want* to see Europe and the UK thrive. I’m a capitalist. I want to see dynamic businesses sprouting up that will give the US and Asian companies good competition. (Competition is great for the consumer.) The EU, as it is now, is not fertile for growing dynamic businesses.
Wouldn’t it be great if either the UK or Europe could have a company that would compete head to head with Microsoft worldwide? I’d love it!! It will only happen if the EU restructures from what it is now.
(As few rules and regulations as possible.)
Chris:
Sorry for the tirade about joining: I didn’t realise you are from the left (!) side of the Atlantic…
The red tape may seem atrociously cancerising to you, but will it be such an issue once citizens will have the right to kick the bottom of all these glutonic parasites? Eurocracy, though ridiculously smaller than national bureaucracies, is just a symptom of decision-making vacuity: it can be removed as soon as continent-wide elected, accountable leaders sweep all that non-significant, temporary hypertrophy.
The sentimental tune you’re singing about “great nations, with long proud histories” is just the populist vein that some bitter, losing, nationalist politicos are desperately trying to surf on. But they can’t surf the tidal wave: more Europe (closer integration & further enlargement) or better Europe (less red tape + elections & accountability) is wanted by voting citizens of any member State.
As for a war in Europe, although anything is possible, such an event is hugely improbable (and please don’t mention the Islamic fifth column: I’ll laugh).
Yes it would be great to have a Eurosoft to challenge Microsoft. Is this linked to EU bureaucracy? Allow me to doubt. Couldn’t it be that the US are simply better on that matter?
David:
Switzerland can also cope with dodgy, convenient banking secrecy. That may sound cliché, but hey…
Unless the UK political classes (elected by British people, aren’t they?) are carefully & succesfully brainwashing the Brits day after day (which is doubtful as we can see British legendary hesitation over joining), it seems that the British themselves “are committed to this stupid project”.
So let’s re-iterate the question: When will you decide once for good to join or to drop? In 2050 or in 3036?
The British are known to be extremely conservative & fond of old traditions. This hesitation over joining the EU may well be one of these traditions. But as you already dropped pounds (avoirdupoids) & farenheits, are you prepared to drop the pound sterling & put it away in any convenient museum?