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Tax reforms in EU Member States 2012 - Tax policy challenges for economic growth and fiscal sustainability

Directorate General for Economic and Financial Affairs (ECFIN) and Directorate General for Taxation and Customs Union (TAXUD), European Commission

Tax reforms in EU Member States 2012 - Tax policy challenges for economic growth and fiscal sustainabilitypdf(2 MB) Choose translations of the previous link 

The report is prepared jointly by DG ECFIN and DG TAXUD of the European Commission. As the previous editions, the report analyses recent trends in tax revenues and tax reforms in EU Member States. This year's report particularly focuses on the analysis of the EU VAT system and on the identification of tax policy challenges faced by EU Member States.

The report examines the economic implications and policy challenges of the EU VAT system, of which it provides an overview of the history and possible future. It analyses welfare gains and economic benefits from simplifying VAT procedures and reviews options to reduce VAT fraud and evasion.

Applying an indicator based approach, the report identifies horizontal challenges that EU Member States are currently facing in the area of tax policy. These relate to (i) fiscal consolidation on the revenue side and growth-friendly tax structures, (ii) broadness of tax bases in both direct and indirect taxation, with a particular focus on corporate tax expenditure, (iii) the need to improve tax governance and (iv) specific tax issues, namely housing taxation, environmental taxation and some redistributive aspects of taxation.

(European Economy. 6. October 2012. Brussels. PDF. 118pp. Tab. Free.)

KC-AR-12-006-EN-C (online)
ISBN 978-92-79-22854-4 (online)
doi:10.2765/190 (online)

JEL classification: See http://www.aeaweb.org/journal/jel_class_system.html E62, H20, H21, H23, H24, H25, H26