Business

EU to cut VAT to pave way for cheaper internet, bicycles, solar panels

European Union finance ministers agreed on Tuesday to change EU rules so that they can cut the Value Added Tax (VAT) on goods and services linked to fighting climate change, health protection and making the EU more ready for the digital age.
At the same time they agreed to phase out by 2030 some of the existing lower VAT rates on fossil fuels or other goods that add to greenhouse gas emissions, to help the 27-nation bloc reach its target of not emitting any CO2, in net terms, by 2050.

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The EU’s standard minimum VAT rate on all goods and services is 15 percent, except for a list of exemptions where the reduced VAT rate must be at least 5 percent. Actual tax rates applied vary between EU countries and between products. Some countries have also agreed on special rates for specific products.
The ministers also agreed that reduced VAT rates and exemptions for chemical fertilizers and chemical pesticides would remain in place until January 1, 2032, to give small-scale farmers more time to adapt.
The deal will allow governments to apply lower VAT rates on products and services making the economy more fit for the digital age, like internet access and live streaming of cultural and sports events.
Wary of the experience of the COVID-19 pandemic, the ministers agreed to add to the list of goods enjoying lower VAT rates health protective equipment like face masks and other medical gear and items considered essential for the disabled.
Lower VAT will also be possible on products linked to fighting climate change like bicycles, green heating systems, and solar panels installed in private homes and public buildings.
The lower rates will become possible once the European Parliament is consulted on the agreement which could take until March 2022.

Business

Credit Suisse managers could face disciplinary action, Swiss regulator says

Swiss financial regulator FINMA said it was considering whether to take disciplinary action against Credit Suisse managers after Switzerland’s second largest bank had to be rescued last week by UBS.
FINMA President Marlene Amstad told Swiss newspaper NZZ am Sonntag it was “still open” whether new proceedings would be started, but the regulator’s main focus was on “the transitional phase of integration” and “preserving financial stability.”

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UBS agreed to buy Credit Suisse for 3 billion Swiss francs ($3.26 billion) in stock a week ago and to assume up to 5 billion francs in losses in a merger engineered by Swiss authorities during a period of market turmoil in global banking.
Credit Suisse on Sunday declined to comment on the FINMA President’s comments when asked by Reuters for a response.
Asked whether FINMA is looking into holding current Credit Suisse managers accountable for the collapse of Switzerland’s second-largest bank, Amstad said it is “exploring the options”.
“CS had a cultural problem that translated into a lack of responsi-bilities,” Amstad was quoted as saying by NZZ, adding: “Numerous mistakes were made over several years”.
FINMA had conducted six public “enforcement proceedings” against Credit Suisse in recent years, Amstad said.
“We have intervened and used our strongest instruments,” she said of its previous moves.
Amstad also defended Switzerland’s decision to write down 16 billion Swiss francs of Credit Suisse Additional Tier 1 (AT1) debt, to zero as part of the forced rescue merger.
“The AT1 instruments contractually provide that they will be fully written off in the event of a trigger event, in particular the granting of extraordinary government support,” Amstad said.
“The bonds were created precisely for such situations.”

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Business

Aramco affirms support for China’s energy security

Saudi Arabian oil giant Aramco affirmed on Sunday its support for China’s long-term energy security and development, the company’s CEO Amin Nasser said in remarks made before a forum in Beijing.

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Nasser said that the company has partnerships and emission-reducing technologies with China to make lower carbon products.

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Business

Kuwait Oil Co dealing with ‘limited fire’ at well where oil leak occurred last week

Kuwait Oil Company said on Sunday it is dealing with a “limited fire” that erupted at a well where oil leaked last week.
The company said in a statement that no injuries had been reported at the scene.
“The company’s operations in the area have not been affected,” the statement read.
Kuwait Oil Company declared a state of emergency last Monday due to an oil leak in the west of the country.

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