EU tax will support Europe’s economic recovery
To promote economic growth, the European Commission is rolling out a new package of measures to ensure EU tax policy supports fair and efficient taxation between now and 2024.
The European Commission’s ambitious new Tax Package is built on two pillars: fairness and simplicity. Adopted on July 15, it is described as a multi-faced approach to make taxation fairer, greener and fit for the modern economy.
“Now more than ever, Member States need secure tax revenues to invest in the people and businesses who need it most. At the same time, we need to break down tax obstacles and make it easier for EU companies to innovate, invest and grow. Today's Tax Package takes us in the right direction, helping to make taxation fairer, more user-friendly and more adapted to our digital world,” said Valdis Dombrovskis, Executive Vice-President for an Economy that works for People.
One, two, three
The Tax package contains three elements. The first is an Action Plan to make taxation simpler, fairer and better attuned to the modern economy. The second is a proposal for a Council Directive aiming at revising the EU’s Directive on administrative cooperation. This proposal aims to introduce an automatic exchange of information between Member States’ tax administrations for income and revenues generated by sellers on digital platforms and strengthen administrative cooperation. The third is a communication on “Tax good governance in the EU and beyond” that will review progress made in enhancing tax good governance in the EU and outside the EU.
With this new Tax Package, the Commission will be able to focus its action on reforming the Code of Conduct for Business Taxation, reviewing the EU list of non-cooperative jurisdictions for tax purposes and reinforcing tax good governance. It will also support developing country partners to improve tax good governance.
Taxation to the future
The Commission will make proposals to ensure that taxation supports the EU's objective of reaching climate neutrality by 2050. Looking ahead, the Commission also plans to address the challenges of the digital economy and ensure all multinational corporations pay their fair share.
Paolo Gentiloni, Commissioner for Economy, said, “Fair taxation is the springboard that will help our economy bounce back from the crisis. We need to make life easier for honest citizens and businesses when it comes to paying their taxes, and harder for fraudsters and tax cheats. These proposals will help Member States to secure the revenues they need to invest in people and infrastructure, while creating a better tax environment for citizens and businesses throughout Europe.”
Find out more
Check out TAXEDU’s training catalogue. Find out what happens if you don’t pay your taxes. Learn about the ‘shadow economy’ and consider how people can help prevent tax evasion. Watch a 6 minute video about the topic.
How can taxes help bring health services into the digital age? Read TAXEDU’s news item about the European Commission’s Communication on Digital Transformation of Health and Care in the Digital Single Market. Find out how taxes can be used for the good of society, as in the case with Europe’s journey towards the digital transformation of health and care services, is not only important.
Thanks to the TAXEDU digital platform, teachers have a range of engaging resources that are available at the click of a button. These resources, including microlearning and e-learning clips, bring lessons to life and help students make the connection between collected taxes and the services they use on a daily basis.