European Commission to Propose Reduction In VAT on Energy-Efficient Goods in October

摘要

Bowing to pressure from France and the United Kingdom, the European Commission confirmed July 4 that it will present a legislative proposal in October calling for reduced value-added tax (VAT) on energy efficient goods to help reduce greenhouse gases and enhance energy independence. At the same time, the commission said it will include measures in the proposal that will call for the elimination of reduced VAT rates for some products and services that are considered harmful to the environment. Energy Commissioner Andris Piebalgs stated at a meeting of EU energy ministers that the legislative proposal would contribute, if approved, an important role in helping the European Union reduce energy consumption by 20 percent by 2020. The EU energy ministers meeting was hosted by France, which assumed the rotating EU presidency July 1. (See related story in this issue.)