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 re-allocation 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. A 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 subsidising home renovations to curb energy bills
- ‘Gari and beans’ lowers risk of belly fat, obesity
- Asanteman walk for Alan non-political – NPP stalwart
- Special Prosecutor’s findings in Labianca case technically flawed – Customs Staff Association
- Messi misses out on 2022 Ballon d’Or as Cristiano Ronaldo, Salah, Benzema, Mane, others get nominated
- Labianca case: Special Prosecutor’s findings not surprising – GII
- ‘Ghana Beyond Aid’ actually in need of more aid – Bokpin
- Playback: Newsfile discusses Ghana’s Fitch downgrade and Labianca case
- Bulk importers to be one of the hardest hit by Ghana’s poor credit ratings – AGI
- Barcelona register 4 new signings in time for opener
- Prosecution granted access to track phone calls of suspects in Asamankese chieftaincy violence
One Ghanaian delegate goes ‘missing’ after Commonwealth Games
BoG gives assurance cedi’s stability will be restored
Satanic Verses author Salman Rushdie stabbed in the neck
‘Gari and beans’ lowers risk of belly fat, obesity
Special Prosecutor’s findings in Labianca case technically flawed – Customs Staff Association
Schools under trees: Pupils of Apaaso DA Basic School near Kintampo appeal for help
Akufo-Addo, Ya-Na commend Farouk Aliu Mahama for Yendi City Project initiative
Labianca case: Special Prosecutor’s findings not surprising – GII
‘Ghana Beyond Aid’ actually in need of more aid – Bokpin
Bulk importers to be one of the hardest hit by Ghana’s poor credit ratings – AGI
Ghana’s economic rating downgrade reflects reality – Theo Acheampong
Asanteman walk for Alan non-political – NPP stalwart
Messi misses out on 2022 Ballon d’Or as Cristiano Ronaldo, Salah, Benzema, Mane, others get nominated
Brazil winger Willian leaves Corinthians after ‘receiving death threats’
Barcelona register 4 new signings in time for opener