Local view for "http://purl.org/linkedpolitics/eu/plenary/2011-10-13-Speech-4-040-000"

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"en.20111013.3.4-040-000"2
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"Madam President, the rapporteur describes lack of harmonisation as a particular problem, or shortcoming, of VAT. I cannot agree that this is a problem at all. Taxes are levied primarily to gain revenue and secondarily to have economic or social effects. Taxes are not levied to look pretty or harmonious. Each country has its own spending agenda and perceived economic and social needs, and it is they who should determine tax rates. We should not levy taxes for the sake of doing so or so that they are the same as in neighbouring countries. I would not reform VAT, I would replace it with a simple but variable sales tax. Flat-rate VAT is a regressive tax because it is paid disproportionately by the less affluent with their high marginal propensity to consume. The zero-rated and exempt items make VAT less regressive than it would otherwise be. However, I suspect that those items would become victims of harmonisation. Furthermore, harmonisation would be impossible to escape were it to be effected by a regulation rather than by a directive."@en1
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