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EU Budget Commissioner Mulls New Tax On EU Citizens

by Ulrika Lomas, Tax-News.com, Brussels

21 October 2002

The European Union's Budget Commissioner, Michaele Schreyer has revealed that she is considering levying a tax on citizens resident in EU member states after enlargement.

In an interview with German newspaper, Der Standard, Mrs Schreyer suggested a change to the way in with the Union is funded, with payments from member states forming the bulk of contributions, but individual European citzens also contributing to the EU budget.

The Budget Commissioner told Der Standard that while she does not support the creation of a new tax for this purpose, she approves of the idea of harmonising an existing tax which would then partly flow 'directly into the EU budget'.

Citing VAT as one possibility, Mrs Schreyer expressed hope that the issue can be raised during discussions on the Convention on the Future of the EU.

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