- The European Commission has proposed a new temporary statistical own resource based on company profits to generate revenue for the EU budget and repay its debt.
- This proposal would require EU Member States to contribute 0.5 percent of the gross operating surplus (GOS) from financial and non-financial corporations to the EU budget, which is estimated to generate EUR 16 billion in revenue.
- This proposal is not a direct tax on companies, but it would require Member States to adjust their fiscal policy. The GNI-based resource is the budget’s largest income source, followed by customs duties and VAT-based contributions.
- The new corporate own resource would not become the Union’s largest source of revenue, but it would be on par with the VAT-based resource at EUR 16 billion.
- The proposal complements and updates the second basket of proposed new own resources, which follows the first basket proposed in December 2022.
- The idea is to have a transitory measure between now and the adoption of BEFIT to balance the basket of own resources and diversify the revenue sources of the EU budget.
Source Tax Foundation
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