Sarkozy Suggests EU Fuel Sales Tax Cap
French President Nicolas Sarkozy considers that the European Union should cap sales taxes on fuel products if oil prices continue to rise.
The Herard Tribune quotes Sarkozy who said in his interview to RTL radio that there was no sign that the price of oil would fall. Therefore, the French president considers that a joint approach to the problem should be considered together with other EU partners.
“If the price of a barrel of oil continues to rise, are we going to allow VAT (sales tax) to keep rising proportionally? My proposal is that we should stabilise it,” he said.
Such a move would need the approval of all 27 EU member states and could not be introduced unilaterally.
Sarkozy also suggested that the 19.6 percent tax imposed on music, DVD and video sales should be reduced to 5.5 percent.
“If things carry on like this we won’t sell another CD in France,” said Sarkozy, whose pop singer wife Carla Bruni is set to issue her third CD in July.
The president added that he would also push for a cut in the 19.6 percent VAT rate imposed on restaurant and bar bills — a longstanding French demand that has repeatedly been shot down by other EU allies.
Related posts:
