The European Commission proposed on Wednesday three new EU-wide taxes to help to repay the joint government borrowing in the 27-nation bloc for their 800 billion euro ($904 billion) COVID-19 recovery fund.
The first measure will introduce a levy on CO2 emitted by fuels for buildings and cars under a new carbon market while using the EU’s existing carbon trading system to impose CO2 costs on ships and increase existing payments from airlines.
A quarter of such CO2 revenues, which currently largely go to governments, would in future go to the EU budget, providing 12 billion euros annually on average from 2026 to 2030, according to the Commission’s proposal.
The second would impose carbon costs on imports of goods from countries with weaker CO2 emissions standards, with three-quarters of those proceeds going to the EU budget, providing 1 billion euros per year on average over 2026-2030.
The third tax would give the EU budget a 15% share of the residual profits from large multinational companies that will be re-domiciled in EU countries under a G20 and OECD agreement on a reallocation of taxing rights.
Those revenues could amount to between 2.5 billion-4 billion euros per year.
The COVID-19 recovery fund is to be paid back by 2058.
EU budget commissioner Johannes Hahn said governments had a strong incentive to agree to the new levies, to avoid having to pay more into the next EU budget to repay that debt.
The Commission proposals must be negotiated by the European Parliament and EU countries. The second package of similar proposals is due in 2023.
But countries are already squabbling over the plans.
Polish climate minister Anna Moskwa told a meeting of EU ministers on Monday that the new carbon market was unacceptable as it would impose an increased burden on vulnerable citizens.
The Commission has said part of the new EU levies should form a fund to shield low-income households from potential costs, for example by subsidizing home renovations to curb energy bills
Source: Reuters
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TIn Ontario, Canada. There's a provincial tax called (Hamonous) and it's 13% that is added to everything you buy from the shop. Suppose you see a pair of shoes that is priced at $100, you'd pay additional 13% on it so you'd end up paying for $113 at the cashier. Ghanaians complain too much but expect so much... Even if you go to the bank and exchange money from Canadian dollars to the US dollars, you'd be taxed 7% SO 1.75% IS A DROP IN THE OCEAN AND TELL GHANAIANS NOT TO THING OF COMING TO NORTH AMERICA BECAUSE TAXES IS WHAT MAKE THIS COUNTRY WORKED USA AND CANADA DO NOT BORROW TO PROVIDE FOR THEIR CITIZENS BUT RATHER THE CITIZENS PAY FOR THEIR DEVELOPMENT NO FREE LUNCH ANY WHERE IN THE WORLD LAZY GHANAIANS THE FREE DAYS ARE OVER LOOSERS.The Vice President, Dr Mahamudu Bawumia, in 1987 obtained a first class degree in economics from the University of Buckingham, the only independent university with a Royal Charter.HIS IS HOW THESE PEOPLE SURVIVE IF LEAVE THERE YOU WILL PAY THERE IS NOTHING LIKE WE WON'T PAY DEMONSTRATION OH GHANA SICK PEOPLE WHO WANTS TO LEAVE FOR FREE AND HAVE THEIR CAKE AND EAT IT TOO.