19. 9. 74 Official  Journal  of the European  Communities No C 109/35 
OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
on the  proposal  for  a Council  Directive  amending  Article  5 (2) of the  Directive  of 
17 July  1969  concerning  indirect  taxes  on the raising  of capital 
The text  referred  to the Committee  has  been  published  in the Official  Journal  of the 
European  Communities  No  C 46 of 23 April  1974,  page  1. 
A. LEGAL  BASIS  FOR  THE  OPINION 
At its meeting,  held  on 28 March  1974,  the  Council  referred  the  abovementioned 
proposal  for  a Directive  to the  Economic  and  Social  Committee  in accordance  with 
Article  100  of the Treaty  establishing  the European  Economic  Community. 
The request  for  an Opinion  was  sent  by the  Council  to the  Economic  and  Social 
Committee  on 29 March  1974. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its Opinion  on the above  matter  at its 
120th  Plenary  Session,  held  in Brussels  on 29 and  30 May  1974. 
The full  text  of the Opinion  is as follows  : 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to Article  100  of the  Treaty  esta-
blishing  the European  Economic  Community  ; 
Having  regard  to the request,  dated  29 March  1974, 
from  the Council  of the European  Communities  for 
an Opinion  on the proposal  for a Council  Directive 
amending  Article  5 (2) of the  Directive  of 17 July 
1969  concerning  indirect  taxes  on the  raising  of 
capital  ; 
Having  regard  to its Rules  of Procedure,  and  in 
particular  Article  22 thereof; 
Having  regard  to the Decision  taken,  in anticipation 
of a consultation,  by its Bureau  on 26 March  1974, 
instructing  the  Section  for  Economic  and  Financial 
Questions  to prepare  an Opinion  on the matter; 
Having  regard  to the  Opinion  delivered  by  the 
Section  for Economic  and  Financial  Questions  at its 
meeting  on 7 May  1974  ; 
Having  regard  to the  oral  report  presented  by Mr 
De Bievre,  Rapporteur  ; 
Having  regard  to the  discussions  at its  120th 
Plenary  Session,  held  on  29  and  30  May  1974 
(sitting  of 29 May)  ; Whereas  Article  5 (2) of the Council  Directive  of 17 
July 1969  should  be brought  into  line  with  the 
underlying  principles  of the  harmonized  capital 
duty, 
HAS  ADOPTED  THE  FOLLOWING  OPINION  : 
1. The  Economic  and  Social  Committee  approves 
the proposal  for a Directive,  submitted  by the Com-
mission,  which  aims  to amended  Article  5 (2) of the 
Directive  of 17 July  1969  concerning  indirect  taxes 
on the raising  of capital. 
At present,  this  paragraph  reads  : 
In the  cases  referred  to in paragraph  1 (a),  (b) 
and (c),  the  amount  on  which  the  duty  is 
charged  shall  not,  however,  be less  than  the 
actual  value  of  the  shares  in the'  company 
allotted  or belonging  to each  member  or the 
nominal  value  of such  shares  if the  latter 
exceeds  their  actual  value'. 
2. It  is true  that  in cases  of an increase  in the 
capital  of a company,  the contribution  in cash  made 
by the existing  shareholders  could  be lower  than  the 
actual  value  of the new  shares  issued  to these  share-
holders  in return  for their  contribution. 
No C 109/36 Official  Journal  of the European  Communities 19. 9. 74 
3. As  a result,  taxation  on the  basis  of Article  5 
(2) of the Directive  of 17 July  1969  should  only  be 
charged  on  operations  which  genuinely  help  to 
increase  the  economic  potential  of the  company, 
this being  the principle  on which  the levying  of the 
harmonized  capital  duty  is based. 
4. It  is desirable  to avoid  making  use of measures 
which  are  liable  to create  obstacles  to increases  in 
the capital  of companies  and  — by the same  token 
— to their  development. 
5. In  this  connection,  the  Committee  points  out 
that in its  Opinion  (x) on  the  'Proposal  for  a 
Council  Directive  concerning  indirect  taxes  on the 
raising  of capital',  it came  out  in favour  of deleting 
the provision  made  in Article  5 (2) of this  proposal. 
The Committee  commented  that  this  provision  was 
justified  regardless  of whether  the  basis  for levying 
(*) OJ  No  134,  23. 7.1965,  p. 2227/65. capital  duty  was  taken  to be the actual  value  or the 
agreed  value  of the assets.  The  duty  must  be levied 
on the  capital  contribution  made  and  not  on the 
value  of the securities  issued  in exchange. 
6. The  Committee  also  stressed  that  one  of the 
results  of this  provision  would  be to tax  the  value 
of subscription  rights. 
7. On  a more  general  level,  the Committee  would 
also point  out  that  in the aforementioned  Opinion, 
it advocated  the  abolition  of indirect  taxes  on the 
raising  of capital  since  such  taxes  are  no longer 
justifiable  in a rational  tax system. 
Done  at Brussels,  29 May  1974. 
The Chairman 
of the 
Economic  and  Social  Committee 
Alfons  LAPP  AS 
OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
on the proposal  for a third  Council  Directive  on taxes  other  than  turnover  taxes  which 
affect  the consumption  of manufactured  tobacco 
The text  referred  to the Committee  has  been  published  in the Official  Journal  of the 
European  Communities  No  C 52 of 7 May  1974,  page  9. 
A. LEGAL  BASIS  FOR  THE  OPINION 
At its meeting,  held  on 8 April  1974,  the  Council  referred  the  abovementioned 
proposal  for  a Directive  to the  Economic  and  Social  Committee  in accordance  with 
Articles  99 and 100  of the Treaty  establishing  the European  Economic  Community. 
The request  for  an Opinion  was  sent  by the  Council  to the  Economic  and  Social 
Committee  on 9 April  1974. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its Opinion  on the above  matter  at its 
12Qth  Plenary  Session,  held  in Brussels  on 29 and  30 May  1974. 
The full  text  of the Opinion  is as follows  : 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the  Treaty  establishing  the Euro-
pean  Economic  Community,  and  in particular  Arti-
cles 99, 100  and  198  thereof; 
Having  regard  to the  request,  dated  9 April  1974, 
from  the Council  of the European  Communities  for an Opinion  on the  proposal  for  a third  Council 
Directive  on taxes  other  than  turnover  taxes  which 
affect  the consumption  of manufactured  tobacco  ; 
Having  regard  to its Rules  of Procedure  and  in parti-
cular  Article  22 thereof;