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EU pensioners don’t “dodge” taxes

July 10th, 2012

Re: Eurocrats told: keep dodging taxes (Daily Express, 10th July 2012)

Whilst the Daily Express (10 July) correctly points out EU officials pay an EU community tax which starts at “just eight per cent” rather than paying national taxes, the paper fails to put this into perspective by adding that the EU tax is levied progressively, reaching 45% for the highest earners.  National tax systems, including the UK’s, are also progressive and start at low or zero levels for lower earners.

Also, EU staff pay 11.6% of their basic salaries in contributions to the pension scheme which is considerable higher than those paid by other national civil servants. 

In addition, staff pay a “special levy” of 5.5% on their basic salary.  Alongside EU community tax contributions, the levy is paid into the EU’s budget which in turn could be argued benefits all member states by reducing their contributions.

The EU is not pressing for higher taxes for EU citizens and to claim that the proposed tax on financial transactions does, is disingenuous.  The Commission wants good tax policies that not only promote employment, investment and growth, but are also fair on EU citizens and the FTT was prepared precisely to address all these.

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Please note that all statements in all entries were correct on the date of publication given. However, older archived posts are not systematically updated in the light of later developments, for example changes to EU law.

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