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5/6/06

Gulf Daily News: EU finance ministers to ease tax burden on firms

For the full report go to Gulf Daily News or click on this linkEU finance ministers to ease tax burden on firms

BRUSSELS: EU finance ministers met yesterday to try to ease a tax headache for companies that do business with customers in other countries at talks covering the state of the European economy as oil prices hold near record levels. After a separate meeting between the 12 nations that use the euro, Luxembourg Prime Minister Jean-Claude Juncker said the European economy is "close to or slightly above its potential growth level" and was coping very well with the rise in oil prices. But he warned that governments had to stick to a promise made last September not to levy extra taxes on energy in an effort to dampen prices.

"We have to stick to the criteria ... avoiding measures that might give wrong signals to the market in response to price rises," he said. Juncker said ministers were starting to discuss a possible windfall tax on energy companies who were reaping big profits from the higher prices, describing record earnings as "a source of irritation for public opinion".

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