VAT rates in member states would not increase, but would consist of two separate components, the national rate and the EU rate. According to the proposal, "the EU and national VAT should appear as separate taxes on the invoices or receipts." The plan is intended to enable citizens to understand more clearly how what they spend contributes to the running of the union. Brussels believes the current system - whereby nearly three quarters of EU funds come directly from national treasuries - makes it hard for citizens to see a direct link between them and the EU. (EUobserver.com)