Poland opposes VAT changes

Poland, Cyprus and the Czech Republic have objected to an EU proposal that allows EU members to apply lower VAT rates to certain areas of the services industry Poland disagreed because the proposal is contradictory to the current situation, when reduced VAT can be used for trades and services such as new apartments, restaurant services and food. The newest proposal makes Poland unable to fully benefit from lower tax rates that are granted in the accession treaty and expire at the end of 2007.

Karl-Heinz Gresser, Austria's Finance Minister, said that the text agreed by the 22 member states was non-negotiable. "They have to move immediately," said Maria Assimakopoulou, a spokesperson for the European Commission. (Reuters)