75 Dr. Upton asked the Minister for Finance if he will give details of discussions held or decisions made at recent meetings of the ECOFIN Council regarding proposals from the Monti Committee on taxation; and if he will make a statement on the matter. [19714/97]
Written Answers. - EU Taxation Policy.
The ECOFIN Council has held discussions in recent months on Commissioner Monti's proposals for a tax package consisting of a code of conduct on business taxation and certain other measures aimed at removing tax-related distortions affecting the EU Single Market. No decisions have yet been taken on the matter. However, the proposals are due to be considered again at the ECOFIN meeting on 1 December 1997 at which it is expected that decisions will be taken.
The code of conduct is seen by the Commission and some member states as the key element of the package and is designed to tackle certain aspects of business taxation which may be harmful to the Community interest. What is envisaged is a voluntary agreement which would not amend or override Community law and which would fully respect the principle of subsidiarity whereby general taxation policy remains the prerogative of the member states. The focus would be on special measures or schemes which provide a low effective tax tate relative to the general business tax rate in the country in question and which involve other special features of a potentially distortionary nature.