BRENTWOOD and Ongar MP Eric Pickles is warning that European Union suggestions that VAT should be added to postage costs will be an extra burden on businesses already hard pressed by the tough economic climate.
Mr Pickles said: "The European Commission is proposing harmonising the way postal systems operate across all members of the EU and as the majority impose VAT on postage the suggestion is that the Royal Mail will have to add
VAT to the price of a stamp.
"That is a high increase for the ordinary consumer, especially with the decline in delivery service that is being experienced particularly in parts of the country, such as Brentwood and Ongar.
"But for businesses the extra cost will be a considerable burden. Postage costs already go up next week with first class increasing to 28p and second class to 20p adding VAT would mean a first class stamp would then cost 33p."
He added: "I believe this is unacceptable and that the Government must campaign to make sure Brussels does not impose VAT on the cost of posting letters or parcels here in the UK."
April 6, 2003 10:00
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