Brussels, 10/10/2011 (Agence Europe) - After putting in place a broad raft of tax stimulus measures from 2008 to 2010, the majority of member states are now clearly orientating their tax policies towards putting their public finances back in order. After a marked decrease in tax revenue in 2008 and 2009, tax revenue is again beginning to rise due to reasons linked to the economic situation and increased taxes. These increases in a number of member states are accompanied by measures to reform tax structures in a view to underpinning growth. These are the main conclusions from the 2011 report on “Tax reforms in EU Member States: Tax policy challenges for economic growth and fiscal sustainability” published by the European Commission on Monday 10 October.
The report examines developments in revenue systems and tax reforms in member states. It also analyses the tax structure as a factor that can help to improve the quality of taxation by reconciling the objective of fiscal consolidation with growth, job creation and social fairness in future tax reforms that member states possibly implement. In this connection, it examines the possible necessity of decreasing, in a targeted way, direct taxation to the benefit of indirect taxes that provoke fewer distortions. More specifically, it identifies Eurozone states in which the increase of tax revenue could help consolidate public finances and those that would find it more advantageous to reduce income tax by compensating for this through an increase in consumer taxation and real estate taxes. Greater tax coordination between member states would also help improve growth at lesser economic cost. For further information: http://www.ec.europa.eu/economy_finance/publications/european_economy/2011/pdf/ee-2011-5_en.pdf . (FG/transl.fl)