Brussels, 22/11/2000 (Agence Europe) - Germany and France presented during the ministerial conclave on Sunday last their first joint contribution to the Intergovernmental Conference on institutional reform. Their proposal concerns the extension of qualified majority vote in Council in the field of taxation (Article 93 of the Treaty). It provides for maintaining the unanimous vote for all provisions in the field of direct taxation and on matters of excise duties and taxes on turnover for everything concerning the fixing of rates, the determining of rate structures and the place where operations are to be taxed. The transition to qualified majority vote is, however, envisaged: a) for the other provisions on harmonisation of taxation on turnover and excise duties; b) for the provisions on energy taxation the main aim of which is to protect the environment; c) for measures: - aimed at eliminating the direct obstacles to the free movement of goods, persons, services and capital (double taxation, etc); - aimed at doing away with harmful tax competition; - relating to mutual assistance, information exchange and cooperation between authorities within the Community, mainly with a view to combating fraud, tax evasion and the recovery of tax credits.
Diplomatic sources say this proposal has very little chance of being approved. The opposition from countries such as the United Kingdom, Luxembourg, Sweden, Denmark and Portugal is such that the extension of qualified majority vote in the taxation field seems, at best, to be only approved concerning cooperation between national administrations for fighting against fraud and tax evasion.