Financial transaction tax
On 30 November, the Permanent Representatives Committee decided to send a letter to the European Parliament requesting its consent on a draft decision that would authorise enhanced cooperation. The Council will continue work on the text once the Parliament has given its consent, and in the light of comments made by delegations.
The Commission in October presented a proposal for a Council decision that would authorise Belgium, Germany, Estonia, Greece, Spain, France, Italy, Austria, Portugal, Slovenia and Slovakia to introduce an FTT via enhanced cooperation. Progress on this dossier is reflected in a report on tax issues to be submitted to the European Council.
Based on article 329(1) of the Treaty on the Functioning of the European Union, the decision requires a qualified majority for adoption by the Council, with the consent of the European Parliament. A legislative act defining the substance of the enhanced cooperation would be adopted subsequently, requiring unanimous agreement by the participating Member States.
In 2011, the Commission proposed a Directive aimed at introducing an FTT throughout the EU, but Council discussions in June and July this year revealed support for the proposal to be insufficient. In September and October, the (above-mentioned) 11 Member States wrote to the Commission requesting a proposal for enhanced cooperation, specifying that the scope and objective of the FTT be based on that of the Commission's original proposal. That proposal involved a harmonised minimum 0.1 per cent tax rate for transactions in all types of financial instruments except derivatives (0.01 per cent rate). The aim was for the financial industry, which many consider as under-taxed, to make a fair contribution to tax revenues, whilst also creating a disincentive for transactions that do not enhance the efficiency of financial markets.
Euro Plus Pact report on taxation
The finance ministers of the Member States participating in the Euro Plus Pact endorsed a report on progress on the coordination of tax policies. They welcomed the presidency's intention to continue paying particular attention to how tax policy can support economic policy coordination and contribute to fiscal consolidation and growth.
Report to European Council on tax issues
The Council endorsed a report to the European Council on tax issues. The report presents the state of play on key legislative proposals such as energy taxation, the common consolidated corporate tax base, the financial transaction tax, the revision of the savings tax Directive and the negotiating Directives for savings taxation agreements with third countries. It also presents works in the Council on ways to improve the fight against tax fraud and tax evasion, including in relation to third countries.
Full results
Videos:
© European Council
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article