On Tuesday 23 March the European Parliament’s Committee on Economic and Monetary Affairs (ECON) adopted by a landslide (48 votes in favour, 4 against and 6 abstentions), the draft own-initiative report by Martin Hlaváček (Renew Europe, Czech Republic) and Andreas Schwab (EPP, Germany) on digital taxation (see EUROPE 12646/20).
Unsurprisingly, all the compromises put together by the political groups (see EUROPE 12683/20) were adopted. The text thus supports an international agreement at the OECD by June 2021 on the two pillars of international tax reform, but also asks the EU to have a plan B in case of failure.
“We will fight for a solution at the OECD G20 level, but if a global solution does not seem possible, the EU should take steps now to implement its own digital tax”, Andreas Schwab said in a statement on Tuesday.
In a written reaction sent to EUROPE, the negotiator for the Greens/EFA group, Frenchman Damien Carême, also welcomed the outcome of the vote, but nevertheless insisted that the problem of taxation is broader than just the digital aspect and requires in-depth reform, starting with the adoption of the Common Consolidated Corporate Tax Base (CCCTB), which has been blocked by the EU Council.
The adoption of the European Parliament report comes just before the meeting of EU Heads of State and Government on 25-26 March, where digital taxation will be discussed (see EUROPE 12682/15). (Original version in French by Marion Fontana)