Cuts to VAT on fuel illegal under EU law, commission says

Cuts to value added tax (VAT) on fuel would not comply with European Union law, the European Commission said on Wednesday, as governments across Europe attempt to combat spiking fuel prices amid the ongoing conflict in the Middle East.

“While we fully understand the need to support citizens during these difficult times, it is important to note that the EU VAT directive does not provide for the possibility to apply a reduced rate on supplies of fuel,” a commission spokesman said.

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