If the US moves ahead with Republican plans to introduce a border adjustment tax, the EU will need to decide on its response. Marek Dabrowski argues that the EU would be unwise to retaliate with its own anti-import policies: the border adjustment tax would be difficult to implement and damaging to the global trade order. Instead the EU should build a broad coalition of allies to defend free trade.
Reflecting the fact that the United States imports more than it exports, border adjustment tax is considered by its proponents as an essential part of the Trump tax reform package.
Now more than ever, the EU needs to address concerns about the significant decline in productivity growth and the increasing perception of unfairness. Completing the single market would unlock the EU's growth potential. At the same time, the EU should empower member states to fight inequality by helping them better distribute the gains arising from economic integration.
The Trump administration seems more than willing to break with liberal orthodoxy on trade. Could this lead them to introduce a "destination tax", essentially penalising imports? If the USA moves ahead with this idea, Mark Hallerberg argues that the EU should seriously consider doing the same. Not only would it balance out some of the trade effects of the US move, it might also have positive political implications for Europe.
When do national tax rulings violate EU state aid rules? Does the European Commission's approach raise concerns about Member State Sovereignity and what is the impact on corporate investments in Europe?
The complicated tax system in India with multiple rates is one of the most difficult issues investors and industry face. The new uniform tax rate aims to attract investors as well as create lower tax burdens for manufacturing firms and final consumers in India. However, a successful implementation of the goods and services tax (GST) will require an efficient IT infrastructure and capacity building of the entire tax administration.
What’s at stake: On August 30th, following the results of an in-depth state aid investigation started in 2014, the European Commission concluded that Ireland granted undue tax benefits of up to €13 billion to Apple. The decision is based on state aid grounds: the Commission argues that two tax rulings issued by Ireland effectively granted Apple preferential treatment, which amounted to state aid. The Commission ordered Ireland to recover up to €13 billion (plus interest) from Apple, but the decision is controversial and opinion differ as to the effects it will have. We summarize reactions.