Digital Taxes Not as Vital as Other Reforms, EU Official Says

Enacting effective digital taxes is a “political duty” rather than a means to raise significant revenue for stretched public budgets, the European Union’s top tax official said Monday.

Reform of value-added taxes and customs systems to close a tax gap estimated at 140 billion euros ($164 billion) in 2018 is more important than digital taxes to repair public finances in the wake of the coronavirus-related economic crisis, said Paolo Gentiloni, the EU’s economy commissioner.

Minimum taxation rates, greater transparency over who pays what taxes, and technological developments that allow exchange of information between tax authorities are also “absolutely ...