EU threats over Internet VAT could end with big fines

The government is ready to rationalize the law on VAT taxes. "The Commission gave us two months to react. After this time it can send the case to the European Tribunal, which would surely end in its winning the case. This would mean we would have to pay a penalty of hundreds of thousands of EUROs for each day the old law was in force," said Jarosław Pietras from the European Integration Committee. The implementation of higher VAT rate does not necessarily mean that the Internet would become more expensive. The government has promised that it will try to lower the price of the Internet in some other way but so far it failed to provide any details. (Parkiet, p. 1) A.F.