No digital tax, the European Commission has different ideas for financing reconstruction

No digital tax, the European Commission has different ideas for financing reconstruction

The European Commission initially planned to repay the loans with a tax on digital services, among other things. But there was a lot of tech sector Cash Which led to Brussels suspending those plans for a “digital tax”.

Instead, the commission is now proposing that a quarter of the revenue from the European CO2 emissions trading system should go to the European budget. European companies pay for their carbon dioxide emissions through this system, also known as ETS. For now, the proceeds from that still go entirely to the member states.

Two new taxes should contribute to the European budget. Part of the tax will come on the import of contaminated products that do not come from Europe. The Committee proposes that three quarters of that proceeds go to the budget. For the rest, the budget will be supplemented by 15 percent of revenue New profit tax For multinational companies.

The European Commission wants to start collecting this revenue for the budget as early as 2023. After the start-up phase is complete, the commission expects to be able to raise around 17 billion euros annually in the period from 2026 to 2030.

Social Climate Fund

Part of the budget will also be allocated to the new Social Climate Fund, which has been allocated in the amount of 70 billion euros. This should provide financial support to vulnerable families during the energy transition to sustainable energy.

The adoption of the proposals is also up to the Member States; They must unanimously agree. But if the budget is not realized, a greater part of the loans will have to be repaid from the contributions of the member states.

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