MOTION FOR A RESOLUTION BY THE COMMITTEE ON ECONOMIC AND MONETARY AFFAIRS (ECON)
#DigiTax: The COVID-19 pandemic caused a widespread shift to the digital services that brought forth a pressing need to update the corporate tax system by implementing digital taxation on earnings from online processes. With growing concerns that an EU-wide digital tax would hinder Europe’s digitalisation, how can the EU build a fair tax system, while supporting innovation in the digital field? Submitted by:
Robert Iatan (RO), Allen Li (FI), Oona Marttinen (FI), Henri Puura (FI), Dimitris Sideris (GR), Kirill Sorokin (FI), Mikko Xu (FI), Isidora Popaj (AL)
The European Youth Parliament, A. Fully aware that the current tax structures are outdated, failing to include and taxate data and knowledge sharing as a means of generating revenue, B. Concerned by the large discrepancies in the effective tax rate between traditional and digital businesses, with the traditional businesses being taxed at 23.2% compared to 9.5% for digital ones, C. Aware that the high digital tax could harm Europe's economic competitiveness, as well as hurt European technological and entrepreneurial development in the global scale, D. Realising that certain ideological differences between Member States together with the existing Euroscepticism1 may cause barriers in the implementation of an EU-wide tax, E. Deeply concerned that the large difference between digital tax percentages across the EU encourages transnational companies to take advantage and locate in tax-havens,
1
Euroscepticism means criticism of the EU and European integration. 21
