EU Considers New Taxes to Fund Next Long-Term Budget

Ambassadors from European Union (EU) member states are discussing new bloc-wide levies to help finance the EU's long-term budget for 2028–2034. The main proposals include a tax on airline tickets, which are currently exempt from value-added tax (VAT), as well as a levy on sugar and ultra-processed foods, according to Euractiv.

Other proposals include fees for tourists from non-EU countries, taxes on companies receiving state subsidies and the reintroduction of a financial transaction tax. Together, the measures are expected to raise €66bn ($75bn) a year for the EU budget.

However, negotiations over the bloc's so-called own resources remain deadlocked. While the European Commission is pushing for new taxes on tobacco, emissions and electronic waste, several member states have expressed skepticism. Swedish Minister for EU Affairs Jessica Rosencrantz argued that the proposals would not generate new money but merely shift costs onto businesses and households.

Any tax reform would also require the unanimous approval of all member states, which closely guard their national tax sovereignty. According to analysts, a tax on carbon-intensive imports has the best chance of winning support because it would not directly affect national budgets.

By contrast, a proposed corporate income tax is considered the least politically viable.

(max)