EU tax reform to meet the demands of the growing digital economy will be on agenda at a European Council meeting in Brussels between 22-23 March.
Currently, big digital corporations such as Facebook and Google have evaded paying millions by declaring income in a single European country, such as Ireland or Luxembourg that offers significant tax breaks.
The European Commission proposes that digital companies with an annual turnover of 750 million euro or more, including at least 50 million euro generated within the European Union, should pay a special tax.
Commenting ahead of the debate European Green Party co-chairs Reinhard Bütikofer and Monica Frassoni said:
“We must adopt a tax strategy that is fair and fit for purpose for our digital age.
“This is an issue that cannot be solved at national level and requires a Europe-wide solution. Europe is now in a position to take the lead and roll out innovative solutions that can be emulated globally.
“As Greens, we believe a common tax scheme for the European Union is the best solution in ensuring that big digital firms pay their fair share in tax. It would also help prevent a race to the bottom with member states attempting to lure companies to their shores by dangling the most attractive rates. Let’s have greater solidarity within Europe towards the common aim of effective taxation for better public services.”
