Kevin Reed, Accountancy Age, Wednesday 27 October 2010 at 10:43:00

Concerns rise over transfer of tax-raising powers to the European Union

Tax-raising direct from Europe would effectively create a "transfer ofsovereignty", according to EU budget commissioner Janusz Lewandowski.

Edicts from the EU to tax member state citizens through VAT or financialtransaction taxes could impinge on principles of national governance, reportedthe Daily Express.

"It needs ratification because it is the prerogative of a national state toset its own taxes," Lewandowski was quoted in the paper.

However the coalition government has promised to put any power-transfer plansto a vote.

"EU taxation proposals are invasive of British democracy's constitutionalposition," said Bill Cash, the Conservative chairman of the House of Commonsscrutiny committee.

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