EU tax proposals go against the interests of the smaller economies of the union

The Head of the Labour Delegation at the European Parliament said that tax competition should remain part of the limited array of decision tools available to national economies. Dr. Alfred Sant was reacting to the ‘Report on tax rulings and other measures similar in nature or effect’ which was presented to the European Parliament. In an explanation of vote, Dr. Sant said that he was voting against this report which is proposing measures that implicitly or explicitly promote moves that on an EU wide basis would introduce tax convergence and harmonisation.This goes against the interests of smaller economies of the Union, that lack the endowments of the larger economies, emphasized the Maltese MEP.
Dr. Sant had earlier informed the President of the S&D group Gianni Pittella and the S&D co-rapporteur Elisa Ferreira about the vote of the S&D Maltese Delegation. The Maltese MEPs both EPP and S&D voted against this report. The report was voted with 508 votes in favour, 108 against and 85 abstentions.

Dr. Sant said the flexibility of the smaller EU economies in policy making is already constrained among others, by the convergence in VAT rates, state aid rules, the single currency, the six pack/two pack rules applied to their budgets. As a result, structural divergences between parts of the Union have grown, not diminished. Reducing the tax flexibility of such economies would further increase these disparities, which is unfair, dysfunctional and unacceptable.

Dr. Sant agreed with recommendations regarding an improvement in transparency related to the taxation measures applying in EU member states. ‘I fully support measures uniquely designed to promote full transparency in national tax treatments. But the report fails to provide a tight definition of fair tax competition, mainly because it is slanted towards a situation in which tax should be harmonised across the EU. ‘For these reasons, I have voted against the Report.’ Said Dr. Sant.

Maltese Version – IL-PROPOSTI TAT-TAXXI TAL-UE JAĦDMU KONTRA L-INTERESSI TAL-EKONOMIJI EWROPEJ ŻGĦAR

Il-Kap tad-delegazzjoni Laburista fil-Parlament Ewropew qal li l-kompetizzjoni fit-taxxi għandha tibqa’ waħda mill-ftit għodod li għad fadlilhom l-ekonomiji nazzjonali. Dr Sant kien qed jirreaġixxi għal rapport dwar deċiżjonijiet rigward it-taxxi u miżuri oħra simili, ippreżentat fil-Parlament Ewropew. Dr. Sant spjega li kien qed jivvota kontra r-rapport li qed jipproponi, b’mod dirett jew indirett, miżuri li jwasslu għall-armonizzazzjoni fit-taxxi jew għall-konverġenza fit-taxxi madwar l-istati membri. ‘Dan imur kontra l-interessi tal-ekonomiji ż-żgħar fi ħdan l-Unjoni, li huma ħafna aktar limitati mill-ekonomiji l-kbar.’ emfasizza Dr Sant.

Dr Sant informa minn qabel lil President tal-Grupp tas-Soċjalisti u Demokratiċi (S&D) Gianni Pittella u l-‘co-rapporteur’ tal-S&D Elisa Ferreira dwar il-vot tad-delegazzjoni Maltija membri tal-S&D. Il-Membri parlamentari Maltin kollha, kemm tal-Partit Popolari Ewropew u kemm tas-Soċjalisti u Demokratiċi, ivvutaw kontra dan ir-rapport. Ir-rapport kiseb 508 voti favur, 108 voti kontra u 85 astenzjoni.
Dr Sant qal li l-flessibilita` tal-ekonomiji ż-żgħar tal-UE diġa` ġiet limitata, fost oħrajn, minħabba l-konverġenza fir-rati tal-VAT, ir-regoli tal-istat, il-munita ewro u l-applikazzjoni tar-regoli tas-‘six pack/two pack’ fil-baġits nazzjonali. Dan wassal biex kibru d-diverġenzi bejn partijiet differenti tal-Unjoni, u mhux naqsu. Jekk il-flessibilita` fir-rati ta’ taxxa ta’ dawn l-ekonomiji se tonqos, aktar se jiżdiedu d-differenzi bejn l-istati, u din tkun inġustizzja li hija inaċċettabbli.

Dr. Sant qabel ma’ rakkomandazzjonijiet li jtejbu t-trasparenzarelatata mal-miżuri tat-tassazzjoni mħaddma fl-istati membri. ‘Naqbel perfettament ma’ miżuri mfassla apposta fir-rapport biex jippromwovu t-trasparenza fit-taxxa hekk kif ikunu maħduma mill-istati membri. Imma r-rapport ma jagħtix definizzjoni preċiża dwar kompetizzjoni ġusta fit-taxxa. Dan għaliex ixaqleb lejn l-idea ta’ armonizzazzjoni ta’ taxxa fil-pajjiżi kollha tal-UE. ‘Għal dawn ir-raġunijiet, ivvotajt kontra r-rapport.’ Qal Dr Sant.