European Commission Calls For Reduced Value-added Tax For 'green' Goods, Services

摘要

An overall value-added tax (VAT) reduction as well as a lowering of rates on specific items such as environmentally friendly goods and services, along with reduced car registration and road taxes for low-emission vehicles, should be adopted in order to help stimulate the EU economy, the European Commission proposed Nov. 26 The proposals were part of the European Commission's $252 billion economic stimulus package unveiled Nov. 26, which is due to be debated by EU finance ministers Dec. 2 and finalized by EU leaders Dec. 11 and 12. Although there is a major division in the European Union about the economic benefit of an across-the-board VAT reduction, the Commission said such a move could help stimulate consumer demand. But it added that other tax reductions, such as those on income, are likely to have a more profound economic benefit.