WRITTEN QUESTION No. 828/98 by Alexandros ALAVANOS to the Commission. Refund of VAT owed to cotton growers
Date: 1998-03-26
Institutions: ALAVANOS, European Parliament
Subjects: Greece, State aid, VAT, cotton, production aid, ratio, redemption

22.12.98

EN

Official Journal of the European Communities

C 402/37

The Commission believes it falls to the Member States to decide about nuclear energy. Regarding the
governmental decision on the closure of the Barseb(cid:228)ck power station, the Commission would indicate that it
has received a complaint on this matter under the Community competition rules. As the complaint is still being
assessed, the Commission is unable to say what conclusions may be reached.

(1) COM(95) 682 final.

(98/C 402/045)

WRITTEN QUESTION E-0828/98

by Alexandros Alavanos (GUE/NGL) to the Commission

(26 March 1998)

Subject: Refund of VAT owed to cotton growers

In Greece the refund of VAT to cotton growers takes the form of a fixed coefficient of 3.5 %. The coresponsibility
levy is not deducted from the sum on which the VAT refund is calculated.

For the 1990-1995 period the Greek Government made a mistake in refunding cotton growers, for which it alone
is responsible, as it has admitted: it refunded the VAT for the years in question without taking into account the
coresponsibility levy. This led to an immediate drop in farmers(cid:146) incomes.

The Greek Government now refuses to refund the VAT on the coresponsibility levy for the 1990-1995 period on
the grounds that it has already completed the notification to the Community of the VAT refund to farmers in
respect of the years in question, and there is no precedent for reexamining the subject, since no relevant EU
procedure exists.

Given that Greek farmers have suffered losses for which the Greek Government is solely responsible, does the
Commission intend, in cooperation with the Greek Government, to examine the issue of refunding the amount of
VAT owed to cotton growers in respect of the coresponsibility levy for the 1990-1995 period?

Answer given by Mr Monti on behalf of the Commission

(6 May 1998)

According to Article 25 of the Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonization of the
laws of the Member States relating to turnover taxes › Common system of value added tax: uniform basis of
assessment (1) Member States may apply a special scheme for small farmers. Article 25 provides for a flat-rate
compensation to enable flat-rate farmers to offset at a fixed rate the value added tax charge on inputs.
The compensation rate is fixed by Member States on the basis of macro-economic statistics. The rate fixed
may not be used to give farmers a higher refund than the amount of the value added tax charges on inputs.
However, Member States may reduce such compensation rates to a nil rate. The compensation to Greek flat-rate
farmers is paid through a refund by the state. The small farmers may according to Article 25 opt for the normal
VAT scheme.

Against this background there is no justification for the Commission to examine with Greece the issue of refund
for the period in question.

(1) OJ L 145, 13.6.1977.

(98/C 402/046)

WRITTEN QUESTION E-0831/98

by Pedro Marset Campos (GUE/NGL) to the Commission

(26 March 1998)

Subject: Anti-social measures by the Murcia local authorities in the zone where the URBAN project is being

implemented and neighbouring areas (Spain)

The Commission is in the process of approving the URBAN plan for Murcia, aimed essentially at urban areas
with poor living standards, high levels of social exclusion, a lack of social amenities and poor-quality housing