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European Commission Mulls EU Tax Reform

by Ulrika Lomas, for LawAndTax-News.com, Brussels

24 March 2003

The European Commission is understood to have discussed again the possibility of a direct EU tax at its meeting last Wednesday.

Currently, the EU receives its income via national contributions from member states, and also receives a percentage of customs levies, VAT, and taxes on agriculture and sugar imposed by EU countries. However, the possibility of a direct tax on European citizens has been raised many times, and has created division within the 20 member commission.

Speaking to the EU Observer news service last week, an unnamed official described the debate as 'lively', and confirmed that the commissioners had discussed to what degree the EU should remain as 'an organisation depending on national contributions,' and whether it should attempt to achieve a greater degree of 'fiscal autonomy'.

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