Addressing tax competition by neighbouring States
7.12.2021
Question for written answer E-005429/2021
to the Commission
Rule 138
Emmanouil Fragkos (ECR)
The tax planning of businesses in northern Greece is driving them to seek more favourable tax arrangements further north. Despite Directive 2016/1164 on the harmonisation of the tax base in the EU, tax competition remains, with the result that countries that insist on over-taxation, such as Greece, end up seeing their tax base shrink.
Bulgaria, like Skopje, with a tax rate of 10% on gross annual company profits, attracts many businesses from northern Greece.
The pressure on northern Greece is reducing development and employment prospects.
It should be noted that. because of the challenges faced by islands, Greek islands are provided with the opportunity for special tax regimes.
Taking into account the contributions of the Commissioners for Transport (E-014146/2013(ASW)) and Economic Affairs (E-008553/2012(ASW), E-008429/2011(ASW)), each government may provide for special tax regimes in its geographical zones, in order to strengthen competitiveness in the long term by attracting productive resources. Since tax harmonisation in Member States, let alone countries outside the EU, is subject to delays, there should be at least a short-term provision on this subject for bordering regions.
In view of this:
- 1.Does the Commission support some kind of special tax arrangement in bordering regions?
- 2.Is there a toolbox for ‘corrective measures’ that the Greek Government could adopt in northern Greece, in order to cover part of the operating costs of businesses?
- 3.Since the policy of clustering in Greece has failed, can there be short-term tax incentives to encourage the creation of spatially specified clusters?