EU Panel Skeptical of Proposals to Align Financial Sector Taxes

EU lawmakers raised concerns Tuesday about proposals for a value-added tax on financial services and a coordinated financial transaction tax as ways to streamline financial sector tax rules across the EU.

The recommendations were made in a study for the European Parliament’s Subcommittee on Tax Matters that found rampant differences between member states’ tax regimes for the financial sector, a problem that the authors said causes double taxation of financial institutions, unnecessary administrative costs, profit-shifting, and aggressive tax planning.

The patchwork of rules also acts as a drain on the bloc’s economy at a time when the EU is seeking ...