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Word Count: 1,517
Non-harmonisation of indirect taxes within the EU is a problem Brussels appears to be having much difficulty dealing with Taxation upon fuel tobacco and alcohol as well as Value Added Tax VAT are but some of the categories that fall under the banner of indirect taxation and with each respected sovereign state within the EU currently adopting their own policy on such matters it can be easily understood how in a proposed free market problems are arising Open frontiers can be linked to the problem as it is widely acknowledged and viewed on a daily basis that by visiting various countries within the EU citizens can make savings upon products they would have previously bought at home costing their respected governments vast amounts in lost revenue from the taxation whilst at the same time benefiting the country where the products were purchased The differences are negatively affecting business throughout the EU and are clearly a barrier to free trade that needs to be addressed Open frontiers and the principle of free movement go hand in hand Free movement is part of the social charter and a success story for the European Union citizens have the right to work or create a business in any EU state and therefore open frontiers are necessary Perhaps the lack of harmonisation is a fault not caused by open frontiers but one that is merely exploited while such discrepancies exist Harmonisation of not just indirect but all taxes is clearly the aim for the Union as then more barriers to trade will have been cleared creating a level playing field for the whole of Europe and thus allowing further economic potential to be filled VAT levels throughout the EU vary from as little as 15 in Luxembourg to as high as 25 in Denmark with all other states residing in the area between Many throughout Europe abuse these differences It is naturally beneficial for a businessman to buy
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