MEPs set to back VAT cut for everyday items

Kritimas
VAT cuts for things like household repairs, care services, audio books and beauty treatments are likely to be backed by MEPs on Thursday. It comes in a debate on European Commission plans to increase the range of goods and services that can use reduced VAT rates. A report on the issue by Dutch Socialist MEP Ieke van den Burg has already backed the idea although Parliament's views are advisory and European finance Ministers will have the final word.

Among the things being proposed for VAT cuts are:

  • Restaurants.
  • Domestic care services for the young, sick, disabled or elderly.
  • Beauty treatments.
  • Audio books (ordinary ones already qualify).
  • Nappies.
  • Housing services such as construction, renovation, repair, alteration, maintenance and cleaning.
  • Minor repairs of computers, watches and gardening services.


The aim is to kick start the European economy and create jobs.
 
Present VAT rules last until 2010 although for a trial period EU members are also allowed to apply lower rates on certain labour intensive services until 2010.