WRITTEN QUESTION No. 2796/96 by Cristiana MUSCARDINI to the Commission. Excessive taxation of small and medium-sized undertakings
Date: 1996-10-21
Institutions: European Parliament, MUSCARDINI
Subjects: Italy, VAT rate, administrative procedure, financing method, fiscal policy, small and medium-sized enterprises, tax system













EUR-Lex - 91996E2796 - EN






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91996E2796

WRITTEN QUESTION No. 2796/96 by Cristiana MUSCARDINI to the Commission. Excessive taxation of small and medium-sized undertakings  


Official Journal C 083 , 14/03/1997 P. 0069 





WRITTEN QUESTION E-2796/96 by Cristiana Muscardini (NI) to the Commission (21 October 1996)Subject: Excessive taxation of small and medium-sized undertakingsIn Italy,small and medium-sized undertakings, which are an important element of the economy in the countries of the European Union, are once again facing a severe recession partly due to domestic political factors, which is forcing some firms to close down.Exempting accumulated profit from tax, at least for the first three or five years, or reviewing tax rates could make a significant contribution to reviving the economic fortunes of this sector, and hence of the country as a whole.Would the Commission look into the situation in this sector in the Community, and propose these or other possible solutions to the governments? Alternatively, if this situation obtains in only a few countries, what instruments does the Commission have at its disposal to oblige states to take action to reduce administrative formalities, bearing in mind the priority measures contained in the report considered at the European Council in Madrid last year?Answer given by Mr Papoutsis on behalf of the Commission (3 December 1996)In its report to the Madrid European Council on small and medium sized entreprises (SMEs) ((CSE(95) 2087. )), the Commission recommended that Member States should develop a bold strategy of administrative and regulatory simplification in favour of SMEs, including a simplified VAT system. Furthermore, the Commission called for a convincing initiative on the part of Member States in order to make equity financing for SMEs more attractive than debt financing, thereby improving their financial stability and their survival rate under difficult economic conditions. Furthermore, the new integrated programme for SMEs and the craft sector ((COM(96) 329 final. )) and the third multiannual programme for SMEs ((COM(96) 98 final. )) highlight the need to continue, in line with the principle of subsidiarity, the spread of best practice on simplifying and improving the fiscal, administrative and regulatory environment for SMEs.Moreover, the Commission underlines the importance of pursuing the work on the new, global approach to taxation policies set out in its reflection document 'Taxation in the European Union' ((SEC(96) 487. )). In this perspective, the Commission's report on the development of tax systems in the European Union ((COM(96) 546. )) recommends better co-ordination of taxation policies by continuing the work of the group of high representatives on fiscal affairs, and creating a permanent forum where Member States and the Commission could share information and review taxation policies. One of the areas identified for discussion in the group is the simplification of the tax environment for SMEs and other businesses.