Amending the sixth VAT Directive 77/388/EEC in the interests of the environment
29.8.2001
WRITTEN QUESTION E-2449/01
by Bart Staes (Verts/ALE)
to the Commission
Cycling is no panacea for the urgent environmental and mobility problems which exist, but it is at least part of the solution. Tax incentives are unquestionably an important instrument here. Accordingly, amendments to the sixth VAT Directive 77/388/EEC[1] are called for. Annex H to the directive lists the products in respect of which EU Member States may introduce VAT rates lower than the standard rate.
Despite a promising communication from its DG Taxation and Customs Union (‘Particular attention will be paid to […] the use of reduced VAT rates in Community policies (e.g. to help protect the environment […]’, COM(2000) 348), the Commission still has not taken any steps in this direction, although a trial has been organised with a view to job creation and reducing undeclared work (by means of Directive 1999/85/EC[2]).
In order to improve the internal logic and consistency of VAT policy in relation to environmental and mobility problems, it seems appropriate to amend the sixth VAT Directive 77/388/EEC with the aim of promoting cycling. All bicycle products and services, including new bicycles, should be added to Annex H.
Will the Commission act as proposed in its promising communication COM(2000) 348 and will it therefore extend Annex H of the sixth VAT Directive 77/388/EEC to include all bicycle products and services, including new bicycles, in order to encourage cycling in the European Union?
If not, why does the Commission refuse to extend Annex H of the sixth VAT Directive 77/388/EEC to include all bicycle products and services, including new bicycles, in view of its promising communication COM(2000) 348?
OJ C 160 E, 04/07/2002