Netherlands postal market liberalised from 2008

The Dutch postal market will be fully liberalised as of January 1, 2008, the Dutch economy ministry said on April 13, 2006.

The full liberalisation of the Dutch postal market will lower prices, allow better quality service and give other companies equal business opportunities. Presently, TPG Post, the mail business of Dutch mail and logistics group TNT NV, has a monopoly on the postal market for letters up to 50 grammes.

According to the Dutch Government, the postal market in the country will still face problems after its liberalisation due to differences in value added tax (VAT) regulations in European countries. Germany, which will also liberalise its postal market as of 2008, announced it will limit or end the VAT exemption to Deutsche Post. The British Government, however, does not intend to terminate the VAT exemption to UK Royal Mail.

The European Commission (EC) decided to eliminate the VAT differences on the British and German postal markets and give foreign competitors a level playing field.

(Editor’s note: According to the Dutch News Digest, by 2009 VAT payment on mail services is to be abolished within the European Union before the liberalisation of the European postal market.)

(Note: The abstract is based on information published by de De Financiele Telegraaf and Het Financieele Dagblad on April 13, 2006.)

www.fd.nl,www.dft.nl,http://www.aiidatapro.com

Source: Het Financieele Dagblad,De Financiele Telegraaf,AII Data Processing Ltd.

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