EU states on the periphery rely on tax flexibility to promote economic activity

Former Prime Minister and MEP Alfred Sant told the European Parliament that EU member states having limited endowments, especially if situated at the periphery, must rely on tax flexibility to promote economic activity. Dr Sant made this statement when explaining why he was abstaining on a report on the proposal for a directive on disclosure of income tax information by certain undertakings and branches.
“I abstained on this motion because it has the effect of promoting EU common policies in favour of tax harmonisation. Declarations made repeatedly during its preparation confirm that this is one of the intentions behind it, going beyond the need — with which I agree — to curb tax abuses and money laundering,” remarked the Maltese MEP.
Dr Sant said that different member states of the European Union have different endowments, while being subject to common rules regarding tariffs, excise duties, VAT, competition policies as well as (for eurozone members) strict budgetary management of debt and deficits. The fact that they must balance their books under eurozone rules ensures that their tax and spend regimes operate competitively under conditions comparable overall to those of their fellow members.
Moreover, the low limits proposed to the turnover of companies that would be subject to income and profit reporting, discriminate against the smaller economies. Due to the country’s size, relatively low turnover by their companies soon spills over into cross-border trade, making them liable to the proposed reporting rules — something which would take longer to happen in the bigger economies, said Dr Sant.
The report was approved with 534 votes in favour, 98 against and 62 abstentions.

Maltese Version – STATI FIL-PERIFERIJA TAL-EWROPA BŻONN IL-FLESSIBILITA` FIT-TAXXA

Il-kap tad-delegazzjoni Maltija tal-S&D Alfred Sant qal li stati Ewropej li għandhom riżorsi limitati, speċjalment dawk fil-periferija tal-Ewropa, għandhom bżonn il-flessibilita` fit-taxxa biex iżidu l-attivita`ekonomika. Dr Sant qal dan fil-Parlament Ewropew waqt li astjena dwar rapport li jipproponi direttiva dwar żvelar ta’ informazzjoni fuq it-taxxa tad-dħul minn ċertu impriżi u fergħat.
“Astjenejt fuq din il-mozzjoni għax hi favur politika komuni Ewropea favur l-armonizzazzjoni tat-taxxa. Id-dikjarazzjonijiet li saru repetutament waqt it-tfassil tagħha jikkonfermaw li wieħed mill-għanijiet tagħha huwa dan, u allura jmur lil hinn mill-ħtieġa – li magħha naqbel – li jitrażżnu l-abbużi fit-taxxi u fil-ħasil tal-flus.” spjega l-MPE Malti.
Dr Sant qal li stati membri differenti mogħnija b’riżorsi differenti, huma suġġettti għall-istess regoli ta’ tariffi, dazji tas-sisa, VAT, politika tal-kompetizzjoni u kif ukoll (għal dawk membri taż-żona ewro) tmexxija tal-baġit stretta ta’ dejn u defiċit. Il-fatt li jridu jibbilanċjaw il-kontijiet taħt ir-regoli taż-żona ewro tiżgura li t-taxxi u l-infiq tagħhom jaħdmu b’mod kompetittiv taħt kundizzjonijiet komparabbli ma’ dawk tal-istati membri l-oħra.
Ir-rapport kien approvat b’534 vot favur, 98 kontra u 62 astensjoni.