15/09/2006: Following the efforts of MEPs Mrs Panayotopoulos-Cassiotou and Mr Ribeiro e Castro for the inclusion of children's diapers in the list of products which could benefit from a reduced VAT rate, the European Commission announced on 19 July, that it would take the necessary steps in order to create a legal basis for the application of reduced VAT to these products.
With this initiative, the Commission could add products to annex H of the 6th VAT Directive or modify its interpretation of the existing ones.
The Commission announcement was preceded by meetings between the two MEPs and Commissioners for taxation and social affairs, Mr Kovacs and Spidla, as well as by several oral questions underlining the necessity to apply the same reduced VAT rate to children's diapers as to adults'. The MEPs had expressed their dismay regarding the unequal taxation treatment of these products which constitute products of first necessity for families.
In its declaration, the Commission indicated that it had sent letters of formal notice to the member states which apply a reduced VAT rate to children's diapers (Malta, Poland, Portugal, Hungary, Czech Republic) in order to obtain additional explanations and information on the basis of which the Commission will examine the possibility to revise annex H of the 6th VAT Directive.
With this decision the Commission clearly shows its commitment to support pro-family policies as a part of the EU's response to demographic challenges and the constant ageing of the population.
Mrs Panayotopoulos and Mr Ribeiro e Castro welcomed the Commission's decision and expressed the hope that the Commission will continue to address favourably the concerns of European families and particularly those facing financial difficulties.
With this initiative, the Commission could add products to annex H of the 6th VAT Directive or modify its interpretation of the existing ones.
The Commission announcement was preceded by meetings between the two MEPs and Commissioners for taxation and social affairs, Mr Kovacs and Spidla, as well as by several oral questions underlining the necessity to apply the same reduced VAT rate to children's diapers as to adults'. The MEPs had expressed their dismay regarding the unequal taxation treatment of these products which constitute products of first necessity for families.
In its declaration, the Commission indicated that it had sent letters of formal notice to the member states which apply a reduced VAT rate to children's diapers (Malta, Poland, Portugal, Hungary, Czech Republic) in order to obtain additional explanations and information on the basis of which the Commission will examine the possibility to revise annex H of the 6th VAT Directive.
With this decision the Commission clearly shows its commitment to support pro-family policies as a part of the EU's response to demographic challenges and the constant ageing of the population.
Mrs Panayotopoulos and Mr Ribeiro e Castro welcomed the Commission's decision and expressed the hope that the Commission will continue to address favourably the concerns of European families and particularly those facing financial difficulties.
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