WRITTEN QUESTION E-3034/01 by Graham Watson (ELDR) to the Commission. VAT on projects supported by voluntary fund-raising.
Date: 2001-10-30
Institutions: European Parliament, Provisional data
Subjects: EU law, United Kingdom, VAT, aid to disadvantaged groups, improvement of housing, legislative procedure, voluntary organisation

20.6.2002

EN

Official Journal of the European Communities

C 147 E/77

Answer given by Mr Monti on behalf of the Commission

(7 January 2002)

So far the Commission has not received any formal complaints concerning the short messages (SMS)
pricing practices of mobile network operators, neither in Spain nor elsewhere in the Community. The
pricing for SMS roaming on the other hand is already subject of the Commission’s sector inquiry into
mobile roaming charges in case COMP/C1/37 639, and the Commission is evaluating standard practices
its standard
and pricing of SMS roaming in the context of
international roaming agreement and inter-operator tariff in Case COMP/C1/37 034.

the GSM Association’s notification of

Parallel pricing in itself is not illegal. Although parallel pricing can be an indication of agreements or of
concerted practices on pricing that do infringe the competition rules, the Commission would generally
require more substantial prima facie evidence before opening a cartel case at its own initiative. The
reported pricing practices for SMS services may reflect the general oligopolistic nature of the national
markets for mobile services in the Community, which makes these markets conducive to parallel behaviour
both on services that are subject to active price competition, and on services that are not.

The Commission cannot prevent the formation of cartels except by the deterrent effect of fines in its cartel
decisions. Where new markets are concerned, as in the case of SMS services, preventive action may in any
event be difficult
to target even if based on ‘ex ante’ sector-specific regulation, although the new
framework currently under negotiation will provide a more flexible basis for responding in similar
circumstances. However, lowering entry barriers and increasing the information available to consumers
will reduce the possibilities for collusion among oligopolists, and increase the incentives to compete for
customers’ business instead.

Meanwhile, the Commission takes note of the Honourable Member’s concern and will forward his question
to the relevant Spanish authorities, who are better placed to judge whether further action may be
warranted.

(2002/C 147 E/080)

WRITTEN QUESTION E-3034/01

by Graham Watson (ELDR) to the Commission

(30 October 2001)

Subject: VAT on projects supported by voluntary fund-raising

Charitable projects for building and refurbishment of hospitals as opposed to housing are obliged to pay
full rate VAT to the UK Treasury, thereby forfeiting a large proportion of the money raised. This is
understandably demoralising for the volunteers involved.

Would the Commission therefore consider reviewing the Annex H list of the 6th VAT Directive, to at least
allow such charitable projects to pay reduced-rate VAT?

Answer given by Mr Bolkestein on behalf of the Commission

(11 December 2001)

Where building and refurbishment are concerned, current Community legislation only provides for the
application of a reduced VAT rate on services supplied to housing (under the social policy).

C 147 E/78

Official Journal of the European Communities

EN

20.6.2002

As part of the experiment with labour-intensive services (1), Member States may also apply a reduced rate
until 31 December 2002 to the renovation and reparation of private dwellings, excluding materials which
form a significant part of the value of the service supplied.

A distinction is made in the relevant Community legislation between dwellings and commercial or
industrial buildings intended in principle for operators that have the right to deduction, and establishments
such as hospitals or schools generally subsidised by the public authorities.

Revision and rationalisation of the rules and derogations applicable in determining reduced VAT rates were
announced by the Commission, in the medium term, in its new VAT strategy (2). The treatment of the
construction sector will also be examined in this context. However, as the adoption of new tax provisions
is still subject to unanimity by the Council, the Commission cannot guarantee the outcome of Council
discussions on the matter.

(1) Council Directive 1999/85/EC of 22 October 1999 amending Directive 77/388/EEC as regards the possibility of

applying on an experiment basis a reduced VAT rate on labour-intensive services: OJ L 277, 28.10.1999.

(2) COM(2000) 348 final.

(2002/C 147 E/081)

WRITTEN QUESTION E-3046/01

by Albert Maat (PPE-DE) to the Commission

(5 November 2001)

Subject: Imports of salted chicken fillet

three years imports of salted chicken fillet

into the EU have increased more than
Over the past
fourteenfold: during the first half of 2001 imports totalled 114 000 tonnes as against only 12 000 tonnes
for the whole of 1998. At the same time, imports of unsalted chicken fillet declined.

Lightly salting chicken fillet makes it subject to a lower import tariff than ordinary poultrymeat. The salt
can easily be shaken off after importation. This improper use of customs tariffs is seriously distorting the
European market in poultrymeat.

The chicken fillet concerned is not really salted but only sprinkled with salt.

How does the Commission intend to keep a check on this situation?

What measures does the Commission intend to take in the event of a breach of the relevant WTO
agreements?

Under current WTO agreements, can the EU unilaterally change the import duty on salted chicken fillet, by
raising the stipulated salt content of 1,2 %?

Answer given by Mr Fischler on behalf of the Commission

(15 January 2002)

The Commission follows with great attention the evolution of imports on the markets for all types of
meat. Imports of salted poultrymeat have indeed shown rapid rates of growth over the last few years,
rising from 3 500 tonnes (t) in 1996 to 109 000 t in 2000 and 150 000 t during the first eight months of
2001, while imports of un-treated boneless chicken meat have decreased by 25 000 t from 1997 to 2000.
The strong demand for poultrymeat during the bovine spongiform encephalopathy (BSE) crisis after
October 2000 gave an additional push to these imports.