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A European Tax system in the post-COVID economy

March 23rd, 2021

On 22 March the European Parliament’s FISC subcommittee discussed its draft report on “Creating an economically, socially and environmentally sustainable European tax system in the post-Covid environment”. The aim of this initiative is to give the Commission the scope it needs to carry out reforms on environmental and societal taxation.

During the meeting, it was mentioned that the post-Covid economic recovery gives the EU a unique opportunity to reassess its taxation system to transform it into a fairer more sustainable model.

ECCVAT strongly believes that charities have a key role to play in the recovery process and should be taken into account in the discussions. Given the constraints on public finances, ECCVAT observes growing pressure on charities to play a greater role in providing front-line services. ECCVAT believes the current situation offers an new opportunity to reassess and appropriately deal with the specific situation of charities which lose billions in irrecoverable VAT, while this could be used instead to help people in need.