EC moves away from harmonisation
The European Commission will this week announce it is opposed to harmonising business tax rates across Europe, according to reports.
EC taxation commissioner Frits Bolkestein will tomorrow argue for ‘increased co-ordination’ though he has persuaded the commission to dump the idea of cross border harmonisation, the Sunday Business reported.
It is also expected that the EC will issue a study on the obstacles to trade across national frontiers, the paper said. Tax burdens across the EU vary greatly, with those in France and Germany the highest and Sweden and Finland the lowest.
The move is likely to please the UK Treasury and chancellor Gordon Brown, who are opposed to harmonisation.