Local view for "http://purl.org/linkedpolitics/eu/plenary/2003-12-03-Speech-3-186"

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"en.20031203.15.3-186"2
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"Mr President, the Commission has recently developed the bad habit of confronting us with proposals, among other things, on the pretext that they dismantle distortions of competition in the internal market and rationalise the VAT system. Unfortunately, they are counterproductive in the current climate. The proposal before us is a case in point. Our rapporteur, Mrs Randzio-Plath, has displayed moderation and realism in preparing her report, and I pay tribute to that. She has also demonstrated these qualities again very comprehensively in her speech. We have generally followed her line because she wishes to make it possible for the Member States to retain their reduced rates of VAT. This applies especially to the reduced rates for labour-intensive services, such as hairdressers and others, which were introduced in 2000. It would be wrong, in the current economic climate, to trigger higher inflation by substantially increasing VAT rates. In my country, for example, this increase would entail a leap in the VAT rate from 6% to 15% for the labour-intensive services listed in Annex K. This special provision was intended to create jobs and reduce ‘black’ working. It expires at the end of the year and is not renewed in the Commission’s proposal, for according to the Commission’s report, its dual objective – which I have mentioned – has not been achieved. However, we do not share this view of things, and nor – as Mrs Randzio-Plath has explained – do the many other people whom we have consulted. It is also doubtful whether an experiment conducted over just three years can be described as a failure after such a short time. It would be premature to draw conclusions at this stage. Unfortunately, I see no good will on the part of the Commission, and our committee has incorporated most of the services listed in Annex K into the expanded Annex Ha so that the reduced rates will continue to apply if the Member State so wishes. On behalf of my group, we have tabled amendments enabling the Member States to continue the experiment at least until the new directive enters into force. If these two amendments are rejected, the provisions of Annex K – Mr President, I still have the two minutes allocated to Mr Karas, who is not here – will expire at the end of the month. The Member States would then have to increase the rates before being allowed to reduce them again in a matter of months when the new directive comes into force, when many of these services will be eligible for the reduced rates. The situation would become quite farcical. The third amendment, which I have tabled on behalf of my group, would permit the Member States to retain the parking rates of at least 12% for a further 15 years, so that the changeover would not have to take place abruptly over night, which I think is reasonable. Despite what the Commissioner would have us believe, nor is there any need to follow his line in the interests of enlargement. I hope that the Commission will see sense and support our very reasonable proposal, and if it does not do so, I trust that the Council of Ministers will vote unanimously to do so."@en1

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