Fueling the VAT debate

A high-ranking EU executive made a series of comments on tax regulations as Hungary prepared to adjust its VAT rules.

"We would expect this commitment to be adhered to and for coordination to take place," spokeswoman Amelia Torres said.

Another spokeswoman, Maria Assimakopoulou, said proposals by Hungary to cut value-added tax in Octoberwould have to be applied generally, not just for fuel.

"They cannot reduce it just in one sector, they may reduce it in all sectors," said Assimakopoulou.

Poland's zł.0.25 cut on petrol duty, which lasts until the end of the year, came into force last week. (Reuters)