Sant says parliaments should be involved in eurozone tax decisions

Former Prime Minister Alfred Sant wants national parliaments to be active participants and decision-makers in the process the European Commission has launched on tax harmonisation in the eurozone.

The Labour MEP said that having the same tax structures for countries which have different economic structures and endowments, especially if they share a common currency, inevitably puts some countries at a permanent disadvantage.

“A transparent taxation system should promote growth, job creation and fiscal consolidation. Not all tax competition is harmful. However most measures being discussed involve national competences and should also be discussed at a national level. While all the remedies being suggested merit careful study and attention, it must be recognised that they will impact strongly on the existing competences of national governments,” Sant said.

“The proposals include the adoption of a common consolidated tax base; moves towards harmonisation of tax rates within the euro zone; the introduction of a minimum tax rate; amendments to the double taxation agreements entered into by states.

“All these issues impact strongly on the autonomy and flexibility of national governments and parliaments to manage their financial affairs,” Sant said.

Sant was addressing the special comittee of the European Parliament which is meeting national parliamentarians from all over the EU on ‘Aggressive tax planning and democratic control of parliaments.’ National parliamentarians discussed the interests and ongoing developments of their respective national tax policies while MEPs mainly discussed the role of national parliamentarians to contribute better to the process of achieving a better EU-level policy framework aimed at non-tax avoidance.