Local view for "http://purl.org/linkedpolitics/eu/plenary/2009-02-19-Speech-4-262"
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"en.20090219.35.4-262"2
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".
Conservatives have always argued that taxation is a fundamental issue of sovereignty and therefore any move to transfer powers in this area from the European Union to the Member States is to be welcomed. This measure, which allows Member States to apply a lower rate of VAT to a number of locally provided and labour intensive services, is a positive example of the application of the principle of subsidiarity, and we encourage the Commission to move further in this direction. In particular, we would have liked the reduced rate to have been extended to locally produced beers and ciders, as this would help pubs to survive when they are suffering from high levels of duty.
We stress that it is for Member States to decide when it is appropriate to apply these measures. The recent reduction of the general rate of VAT in the United Kingdom has been an expensive exercise which has produced little effect, when other measures such as much bigger but targeted reductions in VAT, as permitted by this proposal, or increased personal income tax allowances, would have been more beneficial both to individuals and to the economy as a whole."@en1
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