Risk of Outsourcing

The taxation on agricultural activities in the EU must be harmonised as soon as possible, above all to avoid the risk of production outsourcing among its member States. This was the claim made by Italian euro-parliament representative Giovanni La Via during a parliamentary hearing aimed at the European Commission. “The presence of different fiscal regimes,” La Via stated in a document “creates the premise in the wine sector for disproportionate trade as well as the outsourcing of production between member countries.” The "proposal for a common consolidated taxable base” for companies is currently under discussion, reminded EU Tax Commissioner Algirdas Šemeta in his written response. Once adopted “it should guarantee benefits for entities subject to paying business taxes, including wine producers, thanks to the elimination of obstacles on cross-border activities” inside the EU. A reply which unfortunately did not address the issue raised in that it was not aimed at the function of the EU’s single market, but rather at the risk of a “flight” of businesses looking for more convenient fiscal regimes.