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Deadlock over reduced VAT rates goes on

EU finance ministers have once again discussed proposals to rationalise rules on when member states may apply reduced rates of value-added tax (VAT), without result. EU competition commissioner Frits Bolkestein acknowledged calls from some governments for more freedom of manoeuvre while defending his plan as well balanced. Under the Commission's proposals, published last July, recycling operations would become eligible for reduced VAT. Lobby group Rreuse this week urged ministers to also include reuse operations. See Ecofin council minutes and Rreuse opinion.

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