EU Direct Taxation

A leaked document from the European Commission contains proposals that the EU budget should in future be funded through direct taxation, rather than by the present model under which member states' contributions are based on their Gross National Incomes (GNI).

The document suggests that money for the EU budget should be raised through levies on phone calls, flights, financial transactions or carbon emissions - despite assurances given during the Lisbon Treaty referendum campaign that control of taxation would remain in the hands of the Irish government.

In his preface, Mr Barroso writes that the report 'presents the Commission's vision for the EU budget reform'.

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