Draft paper on IPP moots lower VAT for eco-labelled products

Using reduced rates of VAT to promote greener products and an extension of the producer responsibility concept are among the flagship ideas in a draft of the European Commission's Green Paper on integrated product policy (IPP). Other proposals are that manufacturers should be "obliged and/or encouraged" to supply key environmental data along the product chain and to consumers, and the Commission is also considering a wider labelling strategy beyond the current EC eco-labelling scheme.

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