Dáil Éireann Debate, Thursday - 14 February 2019
74. Deputy Bernard J. Durkan asked the Minister for Finance the position in regard to discussions at EU level to remove taxation policy from member states, having particular regard to Ireland's peripheral location; and if he will make a statement on the matter. [7624/19]
View answerAs the Deputy will be aware, a Commission communication entitled, "Towards a more efficient and democratic decision making in EU tax policy" has recently been published. This communication sets out a roadmap which aims to start a debate around changing the system of voting for tax files from unanimity to qualified majority voting, QMV.
The Commission roadmap identifies the "passerelle clause" as being the most feasible option for moving away from unanimity. This provides that the European Council could unanimously decide to move an entire policy area or part of a policy area from unanimity voting to QMV. The support of the European Parliament, as well as national parliaments, including Dáil Éireann, would also be required. This is a highly sensitive suggestion for many member states, including Ireland, as any move to change the voting method used for tax files would reduce member states' sovereignty.
Ireland believes that the current unanimity based voting procedure is the most appropriate voting system in the area of taxation. Indeed, over the last 4 years, over 21 Taxation initiatives have been agreed by Member States through this voting process. This is an average of one initiative being agreed every 3 months. This includes important Directives on VAT, administrative co-operation, Anti-Tax-Avoidance and also the EU list of non-cooperative tax jurisdictions.
Ireland’s tax sovereignty is an important issue for Irish citizens. During the referendum on whether or not to adopt the Lisbon treaty a political commitment was given by EU leaders to confirm that nothing in the Treaty impacted on Member States’ tax sovereignty.
Given the large volume of important agreements reached at EU level on tax issues, I do not see the need for, or merits of, any proposals to move away from the requirement for unanimity.
The issue was discussed at the ECOFIN meeting earlier this week. While I was unable to attend the meeting personally, I understand that a significant number of my fellow Ministers made clear that their Governments do not support any proposed change to how tax decisions are made at European level.
