Tag: UK

MEPs have again rejected a proposal to add VAT to postal services across the EU.

The law, which would lift a VAT exemption on postal services agreed in the 1970s was rejected in the parliament’s economic committee by 16 votes to 12 with two abstentions. A plenary vote of the full European Parliament will now be held on March 10, after which national governments will consider their position.

MEPs have already rejected the draft in a plenary vote on December 15 but the commission refused to withdraw proposals.

Royal Mail claims it is not afraid of losing business as companies start to use e-mails for billing – the invention of the telephone did not kill off the letter, it points out.

The business handles 82m items of post a day, up from 50m items 10 years ago, partly thanks to the rapid growth of junk mail. “The daily mail bag has grown in line with the growth of e-mail,” said the company. “New mediums of communication have complemented Royal Mail and are not necessarily competition.”