18 Amendments of José GUSMÃO related to 2020/2263(INI)
Amendment 36 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Takes the view that applying a multitude of reduced rates aggravates the complexity and opacity of the tax system, facilitates fraud and increases compliance costs; stresses, however, that any measure of simplification should not lead to higher VAT rates;
Amendment 55 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Notes digitalisation’s potential to reduce compliance costs; maintains that digital innovations23 are likely to reduce compliance costs and help increase the transparency of commercial transactions and fight VAT fraud; stresses the need to ensure data security and individual and corporate privacy; highlights the potential of Distributed Ledger Technology (DLT) to prevent VAT fraud as, e.g. Missing Trader Intra-Community Fraud; _________________ 23Such as AI, big data and blockchain technology.
Amendment 69 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. StresRecognises that a well-designedthe VAT system is neutral and should not affect trade, but that in practice this principle is difficult to verify at global levelot neutral, potentially affecting trade, given the application of VAT exemptions, the ineffectiveness of refund systems, the wide variety of rates – incurring higher compliance costs – and the fact that VAT has superseded income taxes with a view to encouraging trade;
Amendment 72 #
Motion for a resolution
Paragraph 9 a (new)
Paragraph 9 a (new)
9 a. Considers whether the non- neutrality of the VAT system could also be used to the benefit of macroeconomic coherence and cooperation in the EU; calls on the Commission to assess how reduced VAT rates could be applied to address intra-Community trade imbalances;
Amendment 78 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Observes that the application of reduced rates does not systematically give rise to permanent price reductions for the consumer; that the effectiveness of a reduced rate depends on a number of factors, such as the extent to which businesses pass it on to consumers, and its duration over time, the size of the reduction and the complexity of the rate system; that the passing-on of reductions in their entirety is therefore a random process and should not be the basis for policy-making; that it is impossible to target low-income household; considers that price interventions might be necessary to ensure reduced VAT rates translate into reduced prices for consumers;
Amendment 81 #
Motion for a resolution
Paragraph 10 a (new)
Paragraph 10 a (new)
10 a. Is deeply concerned about the regressive nature of consumption taxes; stresses that VAT should be kept at low rates as it burdens lower income households disproportionately, exacerbating the inequality in the distribution of wealth;
Amendment 82 #
Motion for a resolution
Paragraph 10 b (new)
Paragraph 10 b (new)
10 b. Rejects strongly tax reforms that replace progressive taxation with regressive taxation, e.g. reducing income tax rates for top earners or corporate taxes, while increasing VAT; warns against the regressive distributional consequences of such reform efforts; stresses that, in general, an equitable, inclusive and well-designed public revenue system is based on progressive taxation with high rates and low-rated consumption taxes;
Amendment 83 #
Motion for a resolution
Paragraph 10 c (new)
Paragraph 10 c (new)
10 c. Stresses that efforts to simplify or harmonise the VAT system in the EU must not lead to higher standard or non- standard VAT rates; warns that higher VAT rates do not only aggravate distributional inequality but do also affect aggregate demand negatively and therefore, potentially, employment and economic growth;
Amendment 87 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Recalls that for it to have a leverage effect, green taxation must be inclusive, and strive for social equity and not undermine businesses’ international competitiveness; observes that the effectiveness of reduced rates in promoting this type of goods and services or, in a broader sense, merit goods (e.g. culture, health, biodiversity) is chieflyalso a function of the extent to which they are used to promote such goods;
Amendment 92 #
Motion for a resolution
Paragraph 12
Paragraph 12
Amendment 102 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Takes the view that direct tax incentives, such as direct grants or tax credits targeting specific consumers and producers, are morcan also be effective, flexible, visible and cost-effective tools for achieving these social and environmental objectives;
Amendment 107 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. StresseConsiders that a uniform VAT system, combined with a direct tax incentive tool such as the income-based tax credit scheme for low-income households, together with a raft of social reforms, would be a winning strategy; recallcould be a coherent strategy, as long as these do not place an administrative burden on low-income households; considers that New Zealand has a flat-rate VAT system and applies tax credit for low- income households; points out that flat-rate subsidies and information campaigns are an option for the promotion of merit goods;
Amendment 111 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Recalls that VAT revenue is one of the chief sources of public revenue, accounting for some 21% of total tax revenue in the EU on average; that the VAT gap stands at 10% on average; and that VAT also constitutes an own resource for the EU budget; stresses that any reduction in the VAT base leads to less revenue for public finances; calls on national tax authorities to take initiatives to reduce the VAT gap in order to help lift Member States out of the current socio- economic crisis;
Amendment 115 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. Endorses the findings of the DIW Econ study which stresses that on average the standard rate was applied to 71% of the total tax base in the Member States in 2019; points out that diversified VAT systems impose costs on businesses, particularly SMEs via increased compliance costs, create distortions in the internal market and trade, and incur costs on government through lost revenue; adds that reduced rates are an insufficient means of achieving revenue-distribution or environmental objectives;
Amendment 124 #
Motion for a resolution
Paragraph 17
Paragraph 17
17. Notes the difficulties in reducing the VAT gap between Member States owing to the justified need to maintain a number of VAT exemptions for certain goods and services and the willingness of Member States to maintain reduced rates of at least 5%; acknowledges that Member States need to conserve the flexibility to set their own VAT rates given the importance of this tax as a budgetarpolicy instrument;
Amendment 126 #
17 a. Calls on Member States to consider a special consumption tax for a limited range of high-end luxury goods as an additional source of public revenue in light of the extraordinary public costs incurred for the containment of the pandemic;
Amendment 134 #
Motion for a resolution
Paragraph 18
Paragraph 18
18. Calls for a simplified VAT system, with limits on exemptions andout increasing standard or non- standard rates to be introduced, with a view ton promoting competitivenessdistributional justice;
Amendment 136 #
Motion for a resolution
Paragraph 19
Paragraph 19
19. Stresses that the VAT gap is chiefly attributable to the ineffectiveness of enforcement and control measures, particularly those against tax fraud, evasion and avoidance and aggressive tax planning; calls on the Commission to assess how the introduction and implementation of reverse-charge procedures to combat Missing Trader Intra-Community Fraud can be simplified and made more effective in the EU;