Rigid PVC in thin strips is not plasticized PVC, says the National Income Tax Tribunal
The Jutland company EL-LI TAPE/TRYK A/S, that among others is printing information on PVC packaging tape, in 2004 wondered why Ministry of Taxation after the revision of the PVC tax law would charge taxes of their products. The Danish parliament had, as a matter of fact, decided that the taxes on rigid PVC should be abolished, and only plasticized PVC should be subject to taxation in the future. Since EL-LI TAPE/TRYK’s tape is manufactured on the basis of rigid PVC, the company did not understand why they had to pay tax. Ministry of Taxation argued that it was because the PVC tape was cut in so thin strips - as is the case – that it means the tape has the same properties as plasticized PVC, and thus be subject to taxation.
EL-LI TAPE addressed Ministry of Taxation, region East Jutland, and protested against the tax law, however, without any acceptance by this authority. Hereafter the case was appealed to the National Income Tax Tribunal. The National Income Tax Tribunal found 15 November this year that “From a whole assessment of the law text along with the preparations hereof, there is not sufficient authority, according to the tax law, to impose tax on the tape with content of rigid PVC in question. Furthermore, in the legislation there is no clear authority to impose tax on the tape with the reference that is has the same properties as tape with content of plasticized PVC.”
When the revision of the PVC tax law was introduced in 2004, the PVC Information Council Denmark addressed Ministry of Taxation and expressed its astonishment about PVC tape being imposed with tax, only because it looked like plasticized PVC. The approach was without success. Only a law suit resulted in a revision of the law in this respect.
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