By John O'Donnell and Huw Jones
Source: http://www.reuters.com
Algirdas Semeta, the European commissioner in charge of tax issues, also joined German Chancellor Angela Merkel in making a renewed push for a financial transaction tax, an idea that faces stiff opposition from Britain and stands little hope of being adopted globally.
"The quality of taxation will determine whether we sink or swim," Semeta told a news briefing. "Arbitrary tax rate hikes as the only solution (are) neither sustainable nor smart."
He added: "Shifting the burden away from more distortive taxes on labor, toward more growth-friendly ones such as property and consumption is highly advisable."
Semeta's comments come at a time when many European countries attempt to tackle heavy debts with a mix of tax increases and spending cuts.
He urged a wider application of sales tax or VAT, a crackdown on tax-dodging as well as flagging concerns about tax breaks for cars.
"Company cars currently enjoy favorable tax arrangements in 18 member states, to the total cost of 54 billion euros," he said. "Is this clever taxation, particularly when we consider the environmental impact?"
Although the EU's executive has little say over national taxation, it is set to become increasingly influential in how states manage their finances.
Countries receiving assistance from the euro zone, such as Ireland, are already losing leeway in how they set taxes.
Details of Ireland's next budget, including a two percentage point increase in the sales tax rate, were presented to German lawmakers last week -- before their Irish counterparts, sparking a political storm in Dublin.
TAX ON TRADING
Semeta also reiterated his calls for a tax on financial deals. "The under-taxation of the financial sector is difficult to justify when the ordinary citizen is carrying the brunt of austerity measures," he said.
"The financial transactions tax... would redress this imbalance and deliver substantial revenue, without compromising... growth."
Attempts to find agreement internationally with the United States and others on introducing a levy on transactions such as buying and selling shares have foundered.
There are also deep divisions of opinion among the 27 countries in the European Union about going it alone with their own EU financial tax.
Britain, which has a similar tax of its own, will not agree to a pan-European plan, prompting Berlin to push for one in the 17 countries using the euro.
"We will continue intensively to discuss the proposal by the European Commission to introduce a financial transaction tax in Europe," Merkel told German lawmakers in Berlin on Wednesday. "I won't give up hope."
"We all agree that a financial transaction tax would be the right signal to show that we have understood that financial markets have to contribute their share to the recovery of economies," the German chancellor said.
The European Commission has already made a proposal for a tax on trading stocks, bonds and derivatives from 2014.
This could raise 57 billion euros, a large chunk of it in London, Europe's biggest trading center.
But it would still need the approval of EU member countries and the European Parliament to come into force.
British finance minister, George Osborne, has dismissed the idea. "Proposals for a Europe-only financial transactions tax are a bullet aimed at the heart of London," he said earlier this month. "The ideas of a tax on mobile financial transactions that did not include America or China would be economic suicide for Britain and for Europe."
(Additional reporting by Eva Kuehnen in Berlin and Huw Jones in London; editing by Rex Merrifield)
Source: Algirdas Semeta, the European commissioner in charge of tax issues, also joined German Chancellor Angela Merkel in making a renewed push for a financial transaction tax, an idea that faces stiff opposition from Britain and stands little hope of being adopted globally.
"The quality of taxation will determine whether we sink or swim," Semeta told a news briefing. "Arbitrary tax rate hikes as the only solution (are) neither sustainable nor smart."
He added: "Shifting the burden away from more distortive taxes on labor, toward more growth-friendly ones such as property and consumption is highly advisable."
Semeta's comments come at a time when many European countries attempt to tackle heavy debts with a mix of tax increases and spending cuts.
He urged a wider application of sales tax or VAT, a crackdown on tax-dodging as well as flagging concerns about tax breaks for cars.
"Company cars currently enjoy favorable tax arrangements in 18 member states, to the total cost of 54 billion euros," he said. "Is this clever taxation, particularly when we consider the environmental impact?"
Although the EU's executive has little say over national taxation, it is set to become increasingly influential in how states manage their finances.
Countries receiving assistance from the euro zone, such as Ireland, are already losing leeway in how they set taxes.
Details of Ireland's next budget, including a two percentage point increase in the sales tax rate, were presented to German lawmakers last week -- before their Irish counterparts, sparking a political storm in Dublin.
TAX ON TRADING
Semeta also reiterated his calls for a tax on financial deals. "The under-taxation of the financial sector is difficult to justify when the ordinary citizen is carrying the brunt of austerity measures," he said.
"The financial transactions tax... would redress this imbalance and deliver substantial revenue, without compromising... growth."
Attempts to find agreement internationally with the United States and others on introducing a levy on transactions such as buying and selling shares have foundered.
There are also deep divisions of opinion among the 27 countries in the European Union about going it alone with their own EU financial tax.
Britain, which has a similar tax of its own, will not agree to a pan-European plan, prompting Berlin to push for one in the 17 countries using the euro.
"We will continue intensively to discuss the proposal by the European Commission to introduce a financial transaction tax in Europe," Merkel told German lawmakers in Berlin on Wednesday. "I won't give up hope."
"We all agree that a financial transaction tax would be the right signal to show that we have understood that financial markets have to contribute their share to the recovery of economies," the German chancellor said.
The European Commission has already made a proposal for a tax on trading stocks, bonds and derivatives from 2014.
This could raise 57 billion euros, a large chunk of it in London, Europe's biggest trading center.
But it would still need the approval of EU member countries and the European Parliament to come into force.
British finance minister, George Osborne, has dismissed the idea. "Proposals for a Europe-only financial transactions tax are a bullet aimed at the heart of London," he said earlier this month. "The ideas of a tax on mobile financial transactions that did not include America or China would be economic suicide for Britain and for Europe."
(Additional reporting by Eva Kuehnen in Berlin and Huw Jones in London; editing by Rex Merrifield)
Source: http://www.blogger.com/blogger.g?blogID=8408855855627677099#editor/target=post;postID=1569770903958957771
Source: http://www.reuters.com
Algirdas Semeta, the European commissioner in charge of tax issues, also joined German Chancellor Angela Merkel in making a renewed push for a financial transaction tax, an idea that faces stiff opposition from Britain and stands little hope of being adopted globally.
"The quality of taxation will determine whether we sink or swim," Semeta told a news briefing. "Arbitrary tax rate hikes as the only solution (are) neither sustainable nor smart."
He added: "Shifting the burden away from more distortive taxes on labor, toward more growth-friendly ones such as property and consumption is highly advisable."
Semeta's comments come at a time when many European countries attempt to tackle heavy debts with a mix of tax increases and spending cuts.
He urged a wider application of sales tax or VAT, a crackdown on tax-dodging as well as flagging concerns about tax breaks for cars.
"Company cars currently enjoy favorable tax arrangements in 18 member states, to the total cost of 54 billion euros," he said. "Is this clever taxation, particularly when we consider the environmental impact?"
Although the EU's executive has little say over national taxation, it is set to become increasingly influential in how states manage their finances.
Countries receiving assistance from the euro zone, such as Ireland, are already losing leeway in how they set taxes.
Details of Ireland's next budget, including a two percentage point increase in the sales tax rate, were presented to German lawmakers last week -- before their Irish counterparts, sparking a political storm in Dublin.
TAX ON TRADING
Semeta also reiterated his calls for a tax on financial deals. "The under-taxation of the financial sector is difficult to justify when the ordinary citizen is carrying the brunt of austerity measures," he said.
"The financial transactions tax... would redress this imbalance and deliver substantial revenue, without compromising... growth."
Attempts to find agreement internationally with the United States and others on introducing a levy on transactions such as buying and selling shares have foundered.
There are also deep divisions of opinion among the 27 countries in the European Union about going it alone with their own EU financial tax.
Britain, which has a similar tax of its own, will not agree to a pan-European plan, prompting Berlin to push for one in the 17 countries using the euro.
"We will continue intensively to discuss the proposal by the European Commission to introduce a financial transaction tax in Europe," Merkel told German lawmakers in Berlin on Wednesday. "I won't give up hope."
"We all agree that a financial transaction tax would be the right signal to show that we have understood that financial markets have to contribute their share to the recovery of economies," the German chancellor said.
The European Commission has already made a proposal for a tax on trading stocks, bonds and derivatives from 2014.
This could raise 57 billion euros, a large chunk of it in London, Europe's biggest trading center.
But it would still need the approval of EU member countries and the European Parliament to come into force.
British finance minister, George Osborne, has dismissed the idea. "Proposals for a Europe-only financial transactions tax are a bullet aimed at the heart of London," he said earlier this month. "The ideas of a tax on mobile financial transactions that did not include America or China would be economic suicide for Britain and for Europe."
(Additional reporting by Eva Kuehnen in Berlin and Huw Jones in London; editing by Rex Merrifield)
Source: Algirdas Semeta, the European commissioner in charge of tax issues, also joined German Chancellor Angela Merkel in making a renewed push for a financial transaction tax, an idea that faces stiff opposition from Britain and stands little hope of being adopted globally.
"The quality of taxation will determine whether we sink or swim," Semeta told a news briefing. "Arbitrary tax rate hikes as the only solution (are) neither sustainable nor smart."
He added: "Shifting the burden away from more distortive taxes on labor, toward more growth-friendly ones such as property and consumption is highly advisable."
Semeta's comments come at a time when many European countries attempt to tackle heavy debts with a mix of tax increases and spending cuts.
He urged a wider application of sales tax or VAT, a crackdown on tax-dodging as well as flagging concerns about tax breaks for cars.
"Company cars currently enjoy favorable tax arrangements in 18 member states, to the total cost of 54 billion euros," he said. "Is this clever taxation, particularly when we consider the environmental impact?"
Although the EU's executive has little say over national taxation, it is set to become increasingly influential in how states manage their finances.
Countries receiving assistance from the euro zone, such as Ireland, are already losing leeway in how they set taxes.
Details of Ireland's next budget, including a two percentage point increase in the sales tax rate, were presented to German lawmakers last week -- before their Irish counterparts, sparking a political storm in Dublin.
TAX ON TRADING
Semeta also reiterated his calls for a tax on financial deals. "The under-taxation of the financial sector is difficult to justify when the ordinary citizen is carrying the brunt of austerity measures," he said.
"The financial transactions tax... would redress this imbalance and deliver substantial revenue, without compromising... growth."
Attempts to find agreement internationally with the United States and others on introducing a levy on transactions such as buying and selling shares have foundered.
There are also deep divisions of opinion among the 27 countries in the European Union about going it alone with their own EU financial tax.
Britain, which has a similar tax of its own, will not agree to a pan-European plan, prompting Berlin to push for one in the 17 countries using the euro.
"We will continue intensively to discuss the proposal by the European Commission to introduce a financial transaction tax in Europe," Merkel told German lawmakers in Berlin on Wednesday. "I won't give up hope."
"We all agree that a financial transaction tax would be the right signal to show that we have understood that financial markets have to contribute their share to the recovery of economies," the German chancellor said.
The European Commission has already made a proposal for a tax on trading stocks, bonds and derivatives from 2014.
This could raise 57 billion euros, a large chunk of it in London, Europe's biggest trading center.
But it would still need the approval of EU member countries and the European Parliament to come into force.
British finance minister, George Osborne, has dismissed the idea. "Proposals for a Europe-only financial transactions tax are a bullet aimed at the heart of London," he said earlier this month. "The ideas of a tax on mobile financial transactions that did not include America or China would be economic suicide for Britain and for Europe."
(Additional reporting by Eva Kuehnen in Berlin and Huw Jones in London; editing by Rex Merrifield)
Source: http://www.blogger.com/blogger.g?blogID=8408855855627677099#editor/target=post;postID=1569770903958957771
