Government seeks lower VAT rates on internet, printing and handicrafts

Finance Minister Mirosław Gronicki has announced that the government will fight for EU approval of lower VAT rates on internet access, printing services, products for children and folk handicraft. Yesterday the government decided on changes to the EU directive concerning VAT rates that would mean, apart from reducing the VAT rates from 22% to 7% for printing services, that domestic VAT law fully complies with EU standards. Should the new regulations come into life, a 7% VAT rate for construction services would remain in operation even after 2007, when the transition period for this preference ends. (Rzeczpospolita, p. A1) D.W.