VAT exemption on food and medicine to be reviewed

[-:Undertaker:-]

http://uk.reuters.com/article/uk-britain-eu-vat-idUKKCN0V52W8

British VAT exemption on food and medicine to be reviewed by the EU


The European Union executive plans a review of value added tax (VAT) across the bloc that might call into question Britain's right to waive the sales duty on food, medicines and children's clothing, a senior EU official said.

The comment by Economics Commissioner Pierre Moscovici could fuel controversy as Prime Minister David Cameron prepares to call a referendum on Britain's continued membership of the bloc.

Briefing reporters on a European Commission plan to present measures this spring to overhaul the EU's common VAT system, former French finance minister Moscovici said it would consider whether to scrap the British "zero rate" on some items, a legacy pre-dating the current EU minimum VAT of 5 percent.

"We will have to reassess everything," Moscovici said when asked if the VAT reform plans included ending states' ability to set the tax at zero. He stressed that no decision had been made but added: "Zero rate is not the best idea."

Britain, with neighbouring Ireland, is unusual in the extent to which it waives VAT. It would have a veto on any proposal to do away with historic exceptions to the 5 percent minimum introduced in the 1990s.

A new argument with Brussels over tax could add to pressure on Cameron from Eurosceptics in his Conservative party who want to quit the EU. Three months ago, anti-EU campaigners seized on the government's inability to waive VAT on tampons due to EU rules to call for "Brexit" in the referendum that could come as early as June.

A government unable to even remove VAT on tampons. Truly pathetic. And now a French finance minister is going to 'consider' what is best for us.

Reason 10,576 to vote to Leave this summer.

Thoughts?

[dbgtz]

It should be noted that some food has VAT (I think it's warm/cooked food? Maybe it extends beyond that). If we can veto it then there's no issue here unless the government allows the changes.

[-:Undertaker:-]

It should be noted that some food has VAT (I think it's warm/cooked food? Maybe it extends beyond that). If we can veto it then there's no issue here unless the government allows the changes.

Depends if the area is under Qualified Majority Voting (QMV) as many areas increasingly are.

I took a tour of the Houses of Parliament the other week, impressed at the statues and important decisions this country and great statesmen have made there over the centuries from making war to abolishing slavery to even establishing other countries like Canada and Australia. And yet today in 2016 that very same once-powerful democratic body is reduced to arguments/horse-trading with French ministers over a tax and tampons. It's an insult to a sovereign democracy.

[dbgtz]

Depends if the area is under Qualified Majority Voting (QMV) as many areas increasingly are.

I took a tour of the Houses of Parliament the other week, impressed at the statues and important decisions this country and great statesmen have made there over the centuries from making war to abolishing slavery to even establishing other countries like Canada and Australia. And yet today in 2016 that very same once-powerful democratic body is reduced to arguments/horse-trading with French ministers over a tax and tampons. It's an insult to a sovereign democracy.

On the flip side, it could be seen as a good thing that not only are we able to cooperate countries which we have fought against quite often in the past, but also that some of the biggest issues we face as a country are ridiculously trivial, showing just how much better life is today.

Just to be clear, I'm just presenting a counter-argument which might not necessarily represent my own views.

[-:Undertaker:-]

On the flip side, it could be seen as a good thing that not only are we able to cooperate countries which we have fought against quite often in the past, but also that some of the biggest issues we face as a country are ridiculously trivial, showing just how much better life is today.

Just to be clear, I'm just presenting a counter-argument which might not necessarily represent my own views.

My counter point would be there's a difference between co-operation (as we do Canada, America, China, Singpore) and being pressured/told what to do. :P