The European Commission’s Directorate-General Taxation and Customs Union (TAXUD) has published the first edition of a survey on tax policies in the EU.

The survey provides a summary of recent tax policy reforms in Member States to illustrate how decision makers are seeking to use the tax system to achieve the twin objectives of economic stability (efficiency) and social justice (fairness). It presents elements of the design and governance of Member State tax systems that influence these key characteristics. It also puts forward and substantiates the tax policy priorities for the next European Semester cycle.

On increasing efficiency, the survey highlights the need for tax systems to create an environment supportive of investment and innovation, highlighting measures measures such as the Action Plan for a fair and efficient corporate tax system in the EU and the re-launch of the Common Consolidated Corporate Tax Base (CCCTB). It also sets out the role of tax systems in tackling long-term unemployment, namely through reducing the tax burden on labour and on low to middle income earners.

On increasing fairness, the survey highlights the need to continue fighting against tax fraud, evasion and avoidance. It notes the importance of numerous initiatives, from those that aim to increase transparency on tax rulings and multinationals’ tax-related information, to the Commission Action Plan on VAT. It also notes how tax-and-benefits systems can be powerful instruments to reduce market income inequalities.