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EU Commission wants to reform tax policy

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According to a newspaper report, the EU member states should no longer unanimously decide on tax policy issues in the future, according to the will of the EU Commission. On the contrary, decisions with qualified majority are planned, reported the „Frankfurter Allgemeine Zeitung“ (Monday edition).

In a working paper, which the Commission intends to present on Wednesday, the Brussels authorities also propose that the European Parliament should in the future participate equally in tax legislation. Qualified majority means that 55 per cent of the Member States, representing at least 65 per cent of the total EU population, must agree.

Rules prevent innovations

Currently, tax policy is the only policy area where Member States would vote only unanimously and without direct parliamentary participation. This has meant that many tax policy decisions, such as in the fight against tax evasion, have been delayed or not met, said the newspaper. Even a Europe-wide digital tax or a financial transaction tax have so far not failed because of this rule.

According to the Commission, however, „traditional views on national sovereignty“ need to be reconsidered. Only in this way can European tax policy reach its full potential. The question should no longer be whether the departure from unanimity was necessary.