European Commission Eyes New Tax on Corporate Giants
(MENAFN) The European Commission is preparing to introduce a fresh tax targeting major corporations operating within the European Union, aiming to increase funds for the bloc’s shared budget, according to a leaked draft obtained by a news outlet on Friday.
This development arises as Brussels aims to substantially ramp up defense expenditures while continuing military and financial aid to Ukraine.
Earlier this year, in March, Commission President Ursula von der Leyen revealed a strategic initiative to mobilize approximately EURO800 billion (USD841 billion) in defense funding over the upcoming four years, emphasizing the necessity “to respond to the short-term urgency to act and to support Ukraine.”
The proposed tax, set to apply to firms with a net yearly turnover above EURO50 million, is expected to be introduced as early as next week, alongside the EU’s forthcoming seven-year budget proposal.
This new budget is anticipated to be significantly larger than the existing one, which currently stands at over EURO1.2 trillion (USD1.4 trillion).
According to the document reviewed by the news outlet, the tax would encompass all large enterprises operating within the EU, irrespective of their headquarters’ location.
The system would use revenue brackets, requiring companies with the highest incomes to contribute more.
For the measure to be implemented, it must secure unanimous approval from all EU member states.
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