EU member states could lose the right to offer farmers lower VAT rates on pesticides and fertilisers under a green tax package being drafted in the European Commission. European Taxation Commissioner Lazlo Kovacs revealed the plan last week as he mapped out his ideas for an upcoming proposal to revise the list of goods and services for which member states can offer reduced VAT rates. Mr Kovacs said he wanted to extend the list to green goods, such as household appliances that promote energy efficiency, and particularly energy saving services. Speaking at the European Environmental Bureau's annual conference in Brussels on 26 September, Mr Kovacs said he was also considering proposing to end the right for member states to offer reduced rates on "environmentally harmful products such as pesticides and fertilisers."
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