On December 1, 2015, during the official inauguration of Chestas in southwestern France, the photovoltaic park was used to produce solar panels for renewable energy. REUTERS/Regis Duvignau
Reuters, Brussels, December 7-EU finance ministers agreed on Tuesday to change EU rules so that they can reduce and tackle climate change, health protection and make the EU a more digital age.
At the same time, they agreed to phase out some existing lower value-added tax rates on fossil fuels or other commodities that increase greenhouse gas emissions by 2030, in order to help the G27 achieve its goal of not emitting any carbon dioxide. , By 2050.
The European Union’s standard minimum VAT rate for all goods and services is 15%, except for the exemption list where the VAT reduction rate must be at least 5%. The applicable actual tax rate varies with EU countries and products. Some countries have also negotiated special rates for specific products.
The ministers also agreed that the reduction of value-added tax rates and the exemption of chemical fertilizers and chemical pesticides will continue until January 1, 2032, so that smallholder farmers have more time to adapt.
The agreement will allow the government to impose lower VAT rates on products and services, making the economy more suitable for the digital age, such as Internet access and live broadcast of cultural and sporting events.
Concerned about the experience of the COVID-19 pandemic, the ministers agreed to add health protection equipment (such as masks and other medical equipment and items deemed necessary for the disabled) that enjoy a lower value-added tax rate to the list of commodities.
Products related to climate change are also likely to reduce value added tax, such as bicycles, green heating systems, and solar panels installed in private homes and public buildings.
Once it may be necessary to consult the European Parliament on the March 2022 agreement, lower interest rates will become possible.
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