Brussels, 18/01/2011 (Agence Europe) - At the ECOFIN Council on Tuesday 18 January, the Hungarian Presidency unveiled details about its tax priorities for the first six months of the year. The ministers present at the meeting also discussed the Single Market Act.
Taxing the financial industry. At the high-ranking working group, the Hungarian Presidency is planning to continue work already started in this domain, as requested by the European Council of October 2010, to reduce the gaps between member states in how the financial industry is taxed. The idea is to decide on fundamental principles for the member states. In parallel, the Hungarian Presidency is awaiting a Commission impact study in this connection, expected in June 2011, in order to hold a policy debate at the Council meeting in June.
Savings tax. The revisions of the EU savings tax directive will be an important measures under the new Presidency, with the aim of tackling tax fraud more effectively and raising extra income for nation states. After the revised version of the directive is introduced, it will require further amendment to cover the savings tax agreements being negotiated with five non-EU countries in Europe and with 10 associated or dependent territories. The Commission is due to publish a draft proposal for a negotiating mandate and the Presidency will be holding talks to get the directive adopted by the Council.
Green taxes and energy taxation. The Hungarian Presidency wants to introduce a programme in this area that complies with the EU's climate change objectives, particularly the energy tax measures. EU Taxation Commissioner Semeta says that draft legislation will be unveiled during the Hungarian Presidency.
Taxation and the single market. Among a range of measures to revitalise the single market and encourage economic growth, the Commission will be unveiling a draft consolidated tax basis for companies in the spring with a view to encouraging them, and small business in particular, to do business in other countries. The Commission is urging the Presidency to undertake the necessary technical work at the Council as soon as possible. In the same connection, it is planning to define a strategy for removing obstacles to citizens' doing business in other countries and here too, it calls on the Presidency to work on conclusions to be published in the first six months of the year.
Among the tax issues adopted without debate (Point A on the agenda), the ministers reached agreement in principle on the draft EU regulation setting out application measures for VAT Directive 2006/112/EC that has been amended many times and now needs a full revision to clarify certain aspects and adjust them to fit the single market.
Discussion about the Single Market Act. On the initiative of the British delegation, the minsters discussed continuing to expand the single market and the 50 measures set out by the Commission to this end (see EUROPE 10245). The British finance minister highlighted that the ECOFIN Council has power over the taxation aspects of the Commission's measures. (F.G./transl.fl)