Tax revenues in EU member states declined for the first time since the financial crisis of 2009, while public spending increased from 46.5% in 2019 to 53% in 2020 due to the Covid-19 crisis. Data that emerge from the Annual Report on Taxation of 2022 published yesterday by the European Commission.
The report indicates that the pandemic and the invasion of Ukraine by Russia are testing both the resilience of our economies and our ability to react. However, some immediate measures have already been taken to tackle the current crises, including a temporary reduction in energy taxation and income support for the poorest or most affected families.
The publication of the report marks the beginning of a series of events which will help to steer the debate on a tax framework suited to the future. The series of events will culminate on 28 November 2022 with a high-level tax symposium on "EU tax systems in the run-up to 2050". The symposium will generate input and ideas on the large-scale changes needed in the tax field across the EU and will guide the European Commission’s strategic priorities for the future.