EU’s tax-cut plan to ease Spaniards’ cost of diapers
If the European Commission proposal is approved, Spain would be allowed to levy lower value-added tax rates on all absorbent hygiene products and labour-intensive industries.8 July 2008
MADRID - The European Commission proposed on Monday a measure that aims to allow member states to apply a reduction in the value added tax (VAT) charge, leaving it at the current 7 percent in Spain on diapers, sanitary napkins, condoms and other contraceptives.
The plan, however, does not envisage a VAT reduction on CDs and DVDs as lobbied for by Spain and France.
If approved, the new measure will also allow member states to lower VAT at restaurants but it will not apply to alcoholic drinks.
Since a 7-percent VAT charge on alcoholic beverages is already applied at Spanish restaurants, approval of the measure would mean a rise in alcohol prices in these establishments.
The commission said that the aim of the VAT reform is to give member states greater "flexibility".
[El Pais / Expatica]