Taxpayers Association resolutely rejects introduction of dedicated EU tax

EU tax proposal is a relic from the past

A “relic from the past“ is how Rolf von Hohenhau, President of the Taxpayers Association of Europe, described the proposal by the EU Commissioner Janusz Lewandowski to create a dedicated EU tax to finance the EU budget, and he resolutely rejected this proposal.

“For years, continued attempts have been made to make an EU tax palatable to politicians,“ said President von Hohenhau. “Instead of demanding new income for the EU, the EU budget commissioner should set about exploiting the savings potential in EU expenditure.“

“Back in January, Commissioner Lewandowski saw no political chance of introducing an EU tax to finance the EU due to the rule of unanimity regarding matters of tax. Apparently, his opinion has now changed. The Taxpayers Association of Europe, TAE, will do everything to make sure that there will be no EU tax in the future,“ stressed von Hohenhau.

With its own tax revenue, the EU would encourage a general expansion in EU expenditure and a higher tax burden for tax payers. “This is going down the wrong track and may have fateful consequences. Expenditure should not increase continually but must finally be limited“, said the President of the Taxpayers Association of Europe, Rolf von Hohenhau. “Whoever believes that this type of EU tax would have a neutral tax effect is on the wrong track“.

Planning EU expenditure based on estimated future tax revenue additionally involves the risk that in the case of reduced tax revenues the EU will take on debt or will have to tighten the EU tax screw, according to the Taxpayers Association of Europe. Both are rejected by the Taxpayers Association.

“Instead of continually demanding higher revenues and its own EU taxes as a knee-jerk response, a ban on the EU imposing taxes should be anchored in the EU constitution, along with a limitation on expenditure“, demanded von Hohenhau.

Brussels/Munich, August 10, 2010