-Responding to a Commission consultation paper on the question of taxing pension contributions, where the situation is different in the member states, Ieke van den BURG (PES, NL) reporting for the Economic and Monetary Affairs Committee, is broadly in favour of the principle of a tax exemption policy for contributions, with tax due when the pension is paid out. (the so-called 'EET' principle).
The question is important in the context of encouraging labour mobility between the member states and the challenge posed by an increasing ageing population with the peak in the number of retired people expected to be reached between 2030 and 2040. But Mrs van den Burg recognises that, in view of the need to reach agreement in Council on tax questions by unanimity, progress on harmonisation is going to be difficult to achieve through legislation.
The draft resolution is therefore recommending that the Commission and the member states proceed on a basis of open coordination or discussions seeking to abolish double taxation. The aim should, therefore, be to abolish tax obstacles which impede the international transfer of pension rights, albeit on the understanding that the member states have the right to take action to prevent fraud and tax evasion. The committee is calling on those member states which do not apply the EET system to introduce it as soon as possible. The committee wants to see an action plan from the Commission to go to the Spring 2002 Barcelona Summit, to be followed by an agreement on the mutual recognition of occupational pension schemes by 31 December 2003. There is also support for proposals for a pan-European pension scheme.
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