Brussels, 29/03/2010 (Agence Europe) -"Tax is back on the European agenda" after an absence of two years, caused by uncertainty over the Irish referendum on the Treaty of Lisbon, according to high-level sources of the European Commission. With the crisis weakening public finances, the European institution has observed increased appetite for taxation matters since 2010 on the part of the Member States, particularly on the following dossiers: the revision of tax on energy products, supporting businesses active within the single market and consolidating public finances.
The Commissioner with responsibility for taxation issues, Algirdas Šemeta, hopes in May to launch a discussion with his counterparts on revising directive 2003/96/EC, which governs the taxation of energy products. The legislative proposal he hopes officially to present before the summer will bring in an element related to the production of CO2 in calculating the excise applicable to products not covered by the system of trading in greenhouse gas emissions quotas. On the other hand, the Commission is not convinced by the concept of a "carbon tax" to guide production and consumption towards lower-energy models. "This is not the objective we hope to achieve", confirmed a high-level civil servant, referring to the technical problems of calculating the proportion of CO2 in products which would be covered by a tax of this kind.
In light of the proposals, some of them fiscal in nature, to be made by Mario Monti at the end of April to relaunch the single market, the Commission will work to simplify the tax situation of businesses active in more than one Member State. The ambitious project of a common and consolidated corporate tax base (CCCTB) will be reawakened, as Mr Šemeta has decided to take 12 months to revisit this dossier and finalise the impact analysis which must precede any legislative proposal. He will focus in particular on the wording which will make it possible to divide and redistribute the taxable revenue in the Member States in question. Additionally, a public consultation will be carried out very soon on the issue of double taxation in Europe.
The Commission is also convinced that the strategy to move out of the situations of public deficit caused by the financial and economic crisis could create deadlock over the issue of budgetary revenue. We are able to "offer expertise" on measures favourable to growth, employment and environmental protection, explained the above-mentioned high-level civil servant, who noted a gradual shift in taxation from work to consumption. Numerous tax initiatives will also require European coordination. This is the case with the fight against tax evasion, particularly by physical persons, within the EU and at international level. And any initiative which aims to tax financial transactions must enjoy consensus within the EU before an international solution at the G20 can be considered. Because "I cannot see Europe bringing in a tax on financial transactions on its own", this expert explains, fearing that the tax on prices set for consumers could be delayed indefinitely. (M.B./trans.fl)