Poland warned to scrap the discriminatory VAT on citrus fruit from the EU

The European Union (EU) has warned Poland to unify the value-added tax (VAT) levied on apples and other domestically produced fruits to that charged on imported citrus fruits. "You want the VAT on domestic apples to be raised to 7% from 3%," said Polish diplomats to the EU, "Please stop kidding." The Polish side asserts that the recently signed agricultural liberalization deal obliges Poland to scrap duty on products from the EU and vice-versa, as of January next year. The citrus fruits issue has been a source of contention since 1997 when Spain complained its imports were being discriminated against by Poland. Spain has exerted continuous pressure on the EU. (Rzeczpospolita, page B1)