Public hearing on "The role of tax incentives in achieving EU policy goals"
On 27 June 2023, from 15:00 to 16:30, the FISC Subcommittee will host a public hearing on “The role of tax incentives in achieving EU policy goals”. While they come in many shapes and forms (accelerated depreciations, carry-forwards of losses...), tax incentives for businesses are mostly introduced to support either wider economic objectives (growth, job creation, the need to attract foreign direct investment) or specific policies (such as the energy transition).
However, these tax measures have been criticised in recent years as they can be used or abused to lower the corporate tax payments of enterprises significantly, thereby possibly causing a gap in overall tax revenue.
In response, policy-makers have initiated several reforms (patent boxes, minimum tax rate of 15% in the framework of the OECD Pillar 2 reform) in order to counter tax incentives' abuse.
At the same time, the US Inflation Reduction Act has fuelled the discussion about the future role of tax credits in stimulating the economy. In this public hearing, experts will examine and discuss the potential impact of tax incentives on EU policy goals, in particular in promoting a greener Europe and in supporting economic objectives.