France and Britain seek VAT cuts on green products

20th July 2007, Comments 0 comments

PARIS, July 20, 2007 (AFP) - France and Britain are to propose cuts in valued added tax (VAT) on environmentally-friendly products across the EU, President Nicolas Sarkozy and Prime Minister Gordon Brown said Friday.

PARIS, July 20, 2007 (AFP) - France and Britain are to propose cuts in valued added tax (VAT) on environmentally-friendly products across the EU, President Nicolas Sarkozy and Prime Minister Gordon Brown said Friday.

"We are going to ask our finance ministers to go to the (European) Commission ... in order to propose to our European partners that products that are ecologically clean benefit from a lower rate of VAT," Sarkozy said after the two men met in Paris.

"It's not right that a car that pollutes should cost less than a car that doesn't," he said.

"It is time to give new incentives for people who want to buy environmentally-friendly products," Brown said.

He said the initiative concerned "from fridges to insulation, all the major goods that may pollute but actually -- by being produced in a way that is environmentally-friendly -- can benefit the environment," he said.


Copyright AFP

Subject: French news

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