EC warns Czech Republic about nappies

The Czech Republic and four other EU member states face legal action by the EC over children's nappies. The European Commission has warned the Czech Republic, Poland, Hungary, Portugal and Malta that they are violating EU rules by allowing nappies to be sold at lowered value added tax levels. Earlier this year, EU finance ministers agreed to extend an agreement by five years which allows VAT on selected goods and services in several member states to be kept lower than the minimum rate of 15 percent. Nappies are not included. The Commission will give the five countries two months to respond before a second warning is issued. Any country failing to heed the second and final warning will face the European Court of Justice.