Victory for Trump as EU backs down on digital taxes in next budget


The Fee will suggest an EU-wide levy on tobacco merchandise comparable to cigarettes and cigars. These items are at present being taxed by particular person nations, who hold the revenues for themselves.

The EU’s concept comes amid a push to introduce new taxes on e-cigarettes and vapes which might be opposed by Italy, Greece and Romania. | Tolga Akmen/EPA

The EU’s concept comes amid a push to introduce new taxes on e-cigarettes and vapes which might be opposed by Italy, Greece and Romania.

Whereas not opposing the proposed new taxes, Sweden mentioned that handing a part of its nationwide revenues to the EU is “fully unacceptable.”

The Fee additionally suggests taxing discarded electrical gear.

Wednesday’s proposal is anticipated to additionally affirm proposals from 2021 to levy a carbon border tax ― a well-liked concept amongst nations ― and a take share of the revenues generated by the emissions buying and selling scheme (ETS).

This concept is politically delicate amongst Japanese European nations who’re most affected by ETS.

In a concession to critics, the Fee instructed that solely a small share of ETS revenues will movement to the EU finances, whereas the remaining would stick with nationwide governments. It added {that a} controversial plan to increase the scheme to buildings and street transport ― often called ETS2, which is able to come into power in 2027 ― received’t be funneled into the EU finances.

Nationwide governments must unanimously approve the brand new taxes over two years of fraught negotiations that may begin after the Fee makes its proposal.