On Wednesday 14 February, the European Commission listed four possible sources of own resources that could generate between €143 and €441 billion over seven years.
A digital CCCTB divided into 28. In this communication, the European institutions state that a contribution based on the common consolidated corporate tax base (CCCTB), potentially including a revised CCCTB to allow Internet giants to be taxed, would reinforce the link between the benefits of the single market and the financing of the EU.
The Commission stresses that “each member state would retain the possibility to tax its share of the profits at its own national rate”. Depending on the model selected and the rate applied to the proportion allocated to the common budget, a CCCTB-related tax could bring in between €21 and €140 billion over seven years.
Simplified VAT. “Today, the own resource based on VAT relies on very complex statistical calculations. A reformed own resource could be levied from a simplified VAT base”, the Commission considers, adding: “revenues from the current VAT-based own resource are also currently around €105-140 billion over seven years and could be adjusted by calibrating the call rate”.
Reassigning the profits of the central banks. The Commission is also considering an approach that would share a basis with the reduction of the Greek debt, when the ECB and the national central banks decided to reassign it the profits generated on Greek bonds.
“Since monetary income of the European Central Bank from the issuance of the euro is directly linked to the Economic and Monetary Union, it could be considered as a possible new resource”, it explains.
Depending on the percentage applied, the contribution to the multiannual EU budget would be between €10.5 billion (10%) and €56 billion (50%).
Emissions trading system (ETS). A share of the proceeds from the auctioning of allowances could generate revenue of between €7 and €105 billion.
No FTT or plastics tax. On the other hand, the Commission makes no mention of either a resource based financial transactions tax (FTT), which has been in the pipeline for several years, or the possibility of plastics tax, which was recently suggested by the Budget Commissioner, Günther Oettinger (see EUROPE 11934, 11936). (Original version in French by Élodie Lamer)