Poland signs EU deal to keep lower VAT rates for labor-intensive services

The agreement concerning this issue was signed on Wednesday in Vienna by the Polish Finance Minister Zyta Gilowska. She met with tax commissioner Laszlo Kovacs and informed him that Poland had accepted the compromise under some conditions, but refused to reveal any further details. Poland's opposition would mean that prices of services, such as small repairs, repairs of flats, washing windows, hairdressing and home care would go up. This would concern nine countries of the 'old' European Union. Also on Wednesday Prime Minister Kazimierz Marcinkiewicz said on Radio Maryja that Poland would accept the compromise if Poland's demands were accepted. The country demanded to keep the lowered VAT rate after 2007 for purchasing flats and houses as well as for their repair. Poland was opposed by the representatives of the largest EU countries. (Rzeczpospolita, pp. A1, B1) M.M.