Digital Tax: Member State vetoes must not lead to EU inaction

The EPP Group urges the Finance Ministers of the EU Member States to come to an agreement on the planned digital tax at their meeting tomorrow. "We need a long-term fix, which is a common European corporate tax base which makes sure that also in the age of digital economy, taxes are paid where the economic activity is", said the Group's Dariusz Rosati MEP and Gabriel Mato MEP ahead of today's vote on the draft laws in Parliament's Committee on Economic Affairs.

The EU should be a trendsetter.

"The quarrels and mutual vetoes in the Council lead to the EU being unable to tackle the problem. The European Union should be a trendsetter, while also continuing to work on an international solution on the OECD level", Rosati said. Rosati is Parliament's Rapporteur of the law, which aims to change the tax base to better capture the functioning of internet and digital business.

Online companies pay less than half of the corporate taxes ordinary SMEs pay.

"Currently, online companies pay on average less than half of the corporate taxes ordinary SMEs pay. To end this injustice, the EPP Group is in favour of a digital tax. Many tax laws were made decades ago when the digital economy didn’t have a significant role yet. Now we need to bring our tax systems into the 21st century. Citizens expect Europe to take action, because you cannot tackle the problem at national level", said Gabriel Mato MEP. He is the EPP Group's negotiator of a new flat 3% corporate taxation for big internet companies which have revenues of more than €7 million.

The EPP Group will vote in favour of both draft laws in today's vote in Parliament's Committee on Economic Affairs. Parliament is only consulted on tax matters, while EU Member States can decide unanimously only.