MEPs to examine 28th tax regime, excise duties and financial sector taxation
On 16 April 2026, the European Parliament’s Subcommittee on Tax Matters (FISC) is scheduled to hold a meeting covering several key files related to EU tax policy and competitiveness. The agenda includes the presentation of a study entitled “Feasibility of a 28th tax regime in supporting EU competitiveness”, followed by a discussion of the related draft report, which explores the potential for an optional EU-wide tax framework aimed at reducing fragmentation and compliance burdens for businesses. The FISC subcommittee will also hear a presentation of a study on “Excise on Tobacco products”, addressing possible developments in excise duty rules. In addition, Members will consider amendments to the draft report on “A coherent tax framework for the EU’s financial sector”, reflecting ongoing work within the European Parliament on the taxation of financial services, including issues related to VAT treatment and sector-specific measures. The meeting forms part of the Parliament’s broader work on tax simplification and competitiveness, with a deadline for amendments on the draft report on the feasibility of a 28th tax set for 17 April 2026 and further discussions expected in the coming months.
European Parliament hearing discusses tax incentives and regulatory framework for pension investment
On 8 April 2026, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) held a public hearing on the role of pension funds and insurers in capital markets, as part of broader discussions on the Savings and Investment Union and the ongoing pensions package. While the debate, based on the draft agenda, primarily focused on regulatory and market aspects, several interventions highlighted the potential role of tax policy in supporting the development of occupational and supplementary pension schemes. In particular, Members pointed to the importance of stable and predictable tax frameworks, with references to possible tax incentives to encourage long-term savings and participation in pension products. At the same time, concerns were raised regarding the effectiveness of existing frameworks, including the limited uptake of pan-European products such as the PEPP, and the need to balance incentives with transparency and consumer protection. The discussions also reflected broader considerations on how fiscal and regulatory measures can support investment mobilisation while ensuring fairness, sustainability and trust in pension systems, particularly in light of demographic pressures and evolving capital market needs.
Fuel VAT reductions in Spain and Poland raise concerns under EU VAT framework
According to recent reports, the European Commission has raised concerns regarding temporary VAT reductions on fuel introduced by Spain and Poland in response to recent increases in energy prices linked to geopolitical developments in the Middle East. The measures, which form part of wider national support packages, are reported to include reduced VAT rates on fuels and other energy products aimed at limiting the impact on households and businesses. The Commission is said to consider that such reductions may not comply with Directive 2006/112/EC (VAT Directive), which does not allow reduced rates to be applied to fossil fuels, and has reportedly conveyed this view to the Member States concerned. It is further reported that the Commission has referred to the option of lowering excise duties, within the framework of EU legislation, as a possible alternative. These developments take place in a broader context of national measures adopted across the EU to address rising energy costs and reflect the interaction between crisis-driven policy responses and the EU rules governing indirect taxation.
European Commission examines links between corporate taxation and investment in the EU
On 7 April 2026, the European Commission’s Directorate-General for Economic and Financial Affairs (DG ECFIN) published an Economic Brief analysing the relationship between corporate income taxation and investment in the EU. The paper reviews recent empirical findings on how different forms of business taxation affect investment decisions in a context of elevated public debt and fiscal pressures. It finds that reductions in statutory corporate tax rates tend to be a relatively costly tool for stimulating investment, while targeted incentives may offer more efficient outcomes, although their overall impact may remain limited compared to their fiscal cost. The analysis also indicates that taxes based on alternative bases, such as turnover or real estate, may be more distortive to investment than profit-based taxation. In addition, the paper highlights that certain features of corporate tax systems may facilitate aggressive tax planning, potentially undermining tax revenues, and notes that EU-level coordination, including through the European Semester and Recovery and Resilience Plans, has contributed to addressing some of these issues. Overall, the brief provides an overview of policy trade-offs involved in designing corporate tax systems that support investment while safeguarding public finances.
International Tax Observatory examines global allocation of extractive windfall profits
On 7 April 2026, the International Tax Observatory published a working paper analysing how windfall profits in the extractive sector are allocated across jurisdictions during periods of high commodity prices. The paper finds that a significant share of these profits is recorded in low-tax jurisdictions, with tax havens capturing a disproportionate portion of windfall gains, thereby limiting the effectiveness of taxation based on where economic activity takes place. The analysis shows that multinational groups in the extractive sector make use of cross-border structures, including intra-group financing and the location of ownership of assets and rights, which can shift taxable profits away from resource-rich countries. As a result, countries where extraction occurs may not fully benefit from periods of elevated prices and increased profitability. The paper further notes that windfall profit taxes based on locally reported income may therefore capture only part of the excess profits generated. It suggests that alternative design approaches, such as relying on consolidated profits or allocation methods less dependent on reported income, could improve the effectiveness of such taxes. Overall, the findings highlight the importance of aligning tax policy tools with the global structure of extractive industries to ensure that windfall gains are more effectively taxed.
OECD roundtable discusses practical approaches to strengthening tax certainty
On 8 April 2026, the OECD, in cooperation with Business at OECD (BIAC), hosted a Tax Certainty Roundtable in Paris, bringing together over 100 participants, including government officials, business representatives, tax advisers and academics, to exchange views on how tax certainty can be strengthened in practice. The discussions focused on the role of tax administrations in promoting greater certainty through improved tools and approaches, including reflections on the recently released 2026 Manual on Effective Mutual Agreement Procedure (MEMAP). Participants also examined how the benefits of tax certainty can be better measured and assessed, as well as how further practical improvements to the Mutual Agreement Procedure (MAP) framework could enhance its effectiveness in resolving cross-border tax disputes. The roundtable also included forward-looking discussions on the role of evidence-based analysis in demonstrating the value of tax certainty and supporting continued progress in this area. Overall, the event forms part of ongoing international efforts to improve dispute resolution mechanisms and enhance predictability in the global tax environment.
Virtual ETAF Conference on 7 May 2026 – REGISTRATION OPEN
