European Union’s Proposal Opposed

Jack Humphrey, Regulatory journalist
August 10, 2010 /

European Union’s proposal for levying additional taxes in September has received a cold response.  European Union is planning to widen the tax structure and wants to generate taxes from areas which were not tapped so far. It feels that this would help to generate additional revenue to cover its budget requirements. It is argued that it would also reduce its dependency on the resources from the national governments considerably.

The European Union has proposed to levy ‘euro taxes’ on air travel, financial transactions, banks, and carbon permits. The EU had been relying on the import duties and payments received from the 27 member states. Its budget has been approximated at 116 billion pounds so far but its funding is just quarter of the revenues raised by it.

Earlier this year, the European Union budget commissioner Janusz Lewandowski stated that EU was not prepared to have ‘European tax’ but now his stand has changed over the issue. He has been reported as saying that the recommendations of levying financial transaction tax on international money transfers have prompted them to think again over the issue.

The member nations of the European Union have opposed this proposal. Germany and United Kingdom have bluntly rejected the proposal of the European Union as they find it unreasonable. According to the statement of a German official in the Financial Times Germany was completely going to refuse EU tax and deny the involvement of European Union in the national taxes.

Similar stand was taken by the Lord Sasson, the United Kingdom’s commercial secretary. He stated that the member nations would decide the future of EU taxes and they would veto the proposal. He asserted that it was a matter to be decided by the member nations at the national level.

 

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