The Taxpayers’ Association is firmly opposed to the introduction of a special EU tax.

The EU tax proposal is a relic of the past

Rolf von Hohenhau, President of the European Taxpayers’ Association (TAE), described EU Commissioner Janusz Lewandowski’s proposal to introduce an EU tax to finance the EU budget as a “relic of the past” and firmly rejected it.

“For years, there have been repeated attempts to make an EU tax palatable to politicians,” said von Hohenhau. “Instead of calling for new revenue for the EU, the EU Budget Commissioner should exploit the potential for savings in EU expenditure.”

“In January, Commissioner Lewandowski saw no political prospect of introducing an EU tax due to the principle of unanimity on tax matters. Apparently, he has now changed his mind. The European Taxpayers’ Association (TAE) will do everything in its power to prevent an EU tax in the future,” emphasised von Hohenhau.

With its own tax revenue, the EU would encourage a general expansion of EU spending and a higher tax burden on taxpayers. “This is the wrong approach and could have devastating consequences. Expenditure must not be allowed to rise constantly; it must finally be capped,” said Rolf von Hohenhau, President of the European Taxpayers’ Association. “Anyone who believes that such an EU tax would be fiscally neutral is sorely mistaken.”

Planning EU expenditure on the basis of estimated future tax revenue also carries the risk that, should tax revenue fall, the EU would have to take on debt or increase EU taxes, according to the European Taxpayers’ Association. The association rejects both options.

“Instead of constantly calling for higher revenues and the EU’s own taxes as a knee-jerk reaction, a ban on EU taxation, together with a cap on spending, should be enshrined in the EU Constitution,” demanded von Hohenhau.

Brussels/Munich, 10 August 2010