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As the EU sets its sights on harmonising taxation of the rising e-cigarette and heated tobacco products market, lobbyists fight to keep prices down and smokers hooked. The forthcoming negotiations are intertwined with the bitter competition between the two industry giants.
VAT is a regressive tax, putting more burden to the poor than to the rich. Indeed, VAT applies the same rate to everyone regardless of their level of wealth – but the richer you are, the lower the proportion of your revenue goes to consumption. VAT cancels out one-third of the effects of fiscal redistribution.
The OECD has assessed how willing countries are to challenge questionable international tax practices.
The Spanish government has announced its intention to reduce VAT on sanitary towels and tampons in the 2019 budget. Since 2007, European law allows a reduction to the so-called Tampon Tax, although countries such as Hungary, Switzerland and Denmark continue to apply a general rate on such products.
The statistics speak for themselves: countries with higher taxation levels have a greater chance of winning in international football tournaments.
The European Union remains an area in which there is fierce tax competition between its member countries.
It’s back to the drawing board for Italy and its draft budget. And according to Rome, this is not even the most serious case in the EU. So, what is the state of affairs in other countries?
Among the demands of the “gilets jaunes” – “yellow jackets”, who have been protesting in France for more than a month, is a reduction of the tax burden. Indeed, France regularly tops the European rankings in this regard.
When it comes to electric bills, the components that determine how much you pay are changing significantly. And according to standards, this spells major disruptions for classifications.
How can the dubious tax practices of GAFA and European businesses be challenged? One of the responses proposed by the European Union involves a project called CCCTB.