9
Mar
2022
Watch
Fair and simple taxation supporting the recovery strategy (continuation of debate)
Mr President, I welcome the debate on this particular issue regarding the report on fair and simple taxation supporting recovery. And I suppose while we were publishing these reports and processing these reports the last number of weeks, we are now very much in a new dispensation, Commissioner. We face existential challenges in terms of the Ukrainian crisis, and it has changed all the basic metrics on which we were assessing growth into the future and making projections and predictions about how Europe would recover from the COVID pandemic. But we now, as I said, face a more serious crisis, the immediacy obviously of supporting Ukraine, addressing the refugee crisis and supporting the countries where refugees are spilling into the European Union so they can cope and provide humanitarian assistance. But beyond that, when we talk about a fair and simple taxation supporting the recovery, we also have to acknowledge that we do need to do an awful lot more in terms of coordinating within the European Union, reducing the administrative burden so small and medium-sized businesses can trade across the entirety of the single market. And that is always, and consistently is, a significant challenge. So we want to simplify the codes, but at the same time, I am challenged because I also have a difficulty with some of the tone and the content, not just necessarily of this report, but of the general content coming from the Commission, for example, around the issue of unanimity in taxation matters. And Commissioner Gentiloni, you have often raised this particular issue yourself. And I just highlight one instance that will create huge difficulties for Irish people in the short and medium term, that is the cost of home heating oil, a massive increase in home heating oil, and the Irish Government’s hands are tied because there is no flexibility around the issue of VAT in terms of home heating oil. So I bring that to your attention because I am concerned with this continual drift and encroachment of the independence of countries to set their own tax rates. In income tax specifically and other areas, I have a deep concern. But I make a plea on the issue of VAT that there would be flexibility, not just to Ireland, but to many Member States that will find that families will be significantly challenged because of the cost increases in home heating oil and many other fuel products.