Tax competition should remain part of national economies – Alfred Sant

Maltese MEPs voted against a report that promotes measures that would introduce tax convergence and harmonisation

Labour MEP Alfred Sant said that tax competition should remain part of the limited array of decision tools available to national economies.

Sant was reacting to the report on tax rulings and other measures similar in nature or effect, which was presented to the European Parliament.

While explaining his vote, Alfred Sant said that he was voting against this report which is proposing measures that implicitly or explicitly promote moves that, on an EU basis, would introduce tax convergence and harmonisation. “This goes against the interests of smaller economies of the Union”, Sant explained.

Before the vote, the Labour MEP had informed the President of the S&D group Gianni Pittella and the S&D co-rapporteur Elisa Ferreira about the vote of the S&D Maltese Delegation. The Maltese MEPs both EPP and S&D voted against this report. The report was voted with 508 votes in favour, 108 against and 85 abstentions.

He said that the flexibility of the smaller EU economies in policy-making is already constrained by the convergence in VAT rates, state aid rules and the single currency.
Sant agreed with recommendations regarding an improvement in transparency related to the taxation measures applying in EU member states.