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Poland's foot dragging on reducing VAT on citrus fruit trying EU's patience

patience The European Union (EU) is urging Poland to fulfill its pledge of three years ago to reduce value-added tax (VAT) on citrus fruits to the same level it levies on locally produced apples (3%). Poland made the promise in 1997 when Spain threatened to block a crucial EU-Poland meeting. Poland was forced to agree to trim the VAT from 22% to 7%. According to EU negotiators, at the ongoing negotiations on agricultural policy, Poland further promised to unify the taxes on all fruits, both imported and locally produced. Polish negotiators however, assert the EU side has misinterpreted comments by former Foreign Minister Dariusz Rosati. Unofficial sources in Brussels suggest EU patience is about to expire and this could mean an impasse in the Polish-EU talks on agricultural liberalization. (Gazeta Wyborcza, page 25)

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