Local view for "http://purl.org/linkedpolitics/eu/plenary/2002-11-20-Speech-3-169"

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"en.20021120.3.3-169"2
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". When the Council adopted a directive in 1999 authorising the application of reduced VAT rates to certain labour-intensive services, it was understood that this was an experimental measure due to expire on 31 December 2002. Given the circumstances, the decision to extend this measure until the end of 2003 is a positive factor, as emphasised by the rapporteur. In fact, we need to prevent a legal vacuum from being created after 31 December 2002, as this would be harmful to the businesses concerned, in particular, very small, small and medium-sized enterprises. The hotel and catering sector must benefit from a preferential VAT rate, given the very high level of social and fiscal charges that it pays in general. Employers in the catering sector, which is highly labour-intensive, have difficulties both in financing their investments and in recruiting additional staff. Workers in this sector quite rightly consider that reducing the rate of VAT would allow a significant number of employees to be recruited. A reduction in VAT rates would also allow many establishments to adjust working hours. Lastly, this measure would allow tax to be collected more fairly."@en1

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