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Poland can keep its lower sales tax on new housing as part of its social policy (Photo: EUobserver)

EU clears up VAT holiday row

The Austrian presidency of the European Union and Poland have resolved the dispute over the bloc's sales tax deal, with stakeholders relieved the reduced VAT rates on construction works and some local services are safe until 2010.

"It's a victory for Europe," commented Austrian finance minister Karl-Heinz Grasser, after the talks with his Polish counterpart Zyta Gilowska and EU tax commissioner Laszlo Kovacs in Vienna on Wednesday (1 February).

Poland, along with the Czech republi...

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Poland can keep its lower sales tax on new housing as part of its social policy (Photo: EUobserver)

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