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Daily Tax Report: International

Stalled Tax Laws Cost EU $277B in Lost Revenue

Jan. 14, 2019, 2:31 PM

The European Commission estimates that the requirement for all member countries to vote for new tax laws has cost the single market 242 billion euros ($277.5 billion) in lost tax revenue, in a Jan. 14 proposal calling for the abolition of national veto powers in favor of a qualified majority.

  • Commission estimates common consolidated corporate tax base, first proposed in March 2011 and vetoed in 2015, could bring in 180 billion euros
  • Financial transaction tax, proposed in January 2014 and vetoed in 2016, could bring in an estimated 57 billion euros
  • Digital services tax, proposed in March 2018 and vetoed December 2018, could bring 5 billion euros
  • Commission argues qualified majority voting could help the bloc deal with external competition challenges such as those posed by U.S. tax overhaul
  • “External competitive pressures, such as the recent US tax reform, require Member States to act together to safeguard the interests of the Union,” document states

To contact the reporter on this story: Hamza Ali in London at hali@bloombergtax.com

To contact the editor responsible for this story: Penny Sukhraj at psukhraj@bloombergtax.com