European Commission issued the 2013 Annual Growth Survey: Towards fair and competitive tax systems

This year’s Annual Growth Survey is consistent with last year’s, in terms of the guidance given for Member States’ tax reforms

The 5 key objectives which Member States should pursue for growth-friendly tax reforms are as valid now as they were 12 months ago. They should continue to be followed and implemented. These 5 objectives are:
• Shift taxes away from labour towards more growth enhancing taxes such as consumption and property;
• Broaden tax bases rather than just arbitrarily raising rates, for smarter revenue raising;
• Increase environmental taxation;
• Improve tax collection and compliance, particularly through the fight against evasion;
• Remove the tax bias which encourages debt.
In addition, this year the Commission urges Member States to focus on increasing both the competitiveness and fairness of their tax systems, as these 2 principles determine the legitimacy of any tax system for the public.