EC could ramp up VAT

PA

The European Commission has issued new proposals which would see VAT slapped on a range of things from essential food to books and children's clothes - which are currently free from VAT. There would also be a rise in the 5% VAT rate on household fuel. The changes are expected to add about £800 a year to the cost of the basics for a typical family.

So why are they suggesting these changes, and how can they dictate what tax we pay?