Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
It remains unclear to me why a VAT should also be raised over surcharges and levies.

The idea is that by doing it this way, the government can extract more money from citizens.

I little bit too cynical, I daresay... in my understanding this is imposed by the logic of Value Added Tax, which propagates through the manufacturing and trading pipeline to end up at the consumer as a known percentage of the retail price. And those pipelines can be border crossing, making it an EU business to regulate. So, a member state can change a product's VAT percentage, but they cannot exempt part of the its production cost from VAT.

by mustakissa on Fri Jul 5th, 2013 at 03:10:03 PM EST
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