Breakthrough in sight over MEPs’ taxes

Date: 25/10/01

By Martin Banks

AN end is in sight to the long-running debate over how much MEPs are taxed, European Voice can reveal.

Under new proposals, all deputies would pay the same 'Community' tax which would go directly into European Union coffers. Member states would still be free to levy national duties but would have to deduct the amount of community tax paid.

At present, MEPs pay the same rate of tax as members of their national governments and this goes to the member state's treasury.

The compromise was tabled by the Belgian EU presidency and is expected to be adopted at a meeting of the general affairs council, which deals with MEPs' pay, on Monday.

The deal would satisfy the so-called 'communitarians', who believe all MEPs should pay Community tax, as well as a number of eurosceptic member states, who believe MEPs should pay national tax.

If the package is approved, the way would be clear for Parliament to deal with the vexed question of MEPs' salaries, pensions and expenses.

Dutch deputy Michiel van Hulten hailed the deal as an "important landmark". He said: "It means an end is finally in sight to the deadlock on what we should pay in tax. I welcome it because I believe that we should all be taxed the same."

Since 1998, Parliament and the Council have been locked in talks on the introduction of a uniform system of pay and allowances for all MEPs. At present, there are huge discrepances between deputies in terms of what they are paid and taxed.

An Italian member, for instance, earns three times as much as his/her Spanish or Swedish counterpart.

Report of the latest development in the long-running debate over how much MEPs are taxed.