Creating an European tax system in the post-COVID economy

18-03-2021 - 14:14
Subcommittee on Tax Matters (FISC) Subcommittee on Tax Matters (FISC)
FISC Subcommittee © Image used under the license from Adobe Stock

On 22 March 2021, the FISC Subcommittee will consider the draft own-initiative report on “Creating an economically, socially and environmentally sustainable European tax system in the post-covid environment”.

In the space of a few months, European countries showed that they could take unprecedented measures, even at the cost of our economies. The next five years will be crucially important for tax policy. Because of recent developments concerning taxation and tax collection, tax incidence has been shifted from wealth to income, from capital income to labour income and consumption, from multinationals to SMEs, and from the financial sector to the real economy. In the face of those challenges, solutions need to be found in support of a just transition to a sustainable economy.

Reforms of the tax systems should pursue three main objectives: ecological transition; reducing social inequalities; and, lastly, restoring competitiveness for EU businesses, in particular SMEs.

The deadline for amendments is on 13 April 2021 and the consideration of amendments will take place at the meeting of the FISC committee on 25 May 2021.