European Court of Justice has opened doors to a sectoral turnover taxes
LEADELL Balciunas and Grajauskas Managing Partner Marius Grajauskas commented at Lithuanian business news portal Vz.lt article European Court of Justice has opened doors to a sectoral turnover taxes:
• The court determined that Sectoral turnover taxes are not in conflict with EU law.
• The European Commission has also changed its negative position on such taxes.
• However, the change in assessment is far from an automatic authorization to tax turnover.
Marius Grajauskas comments that the latest law case of the ECJ shows that sectoral turnover taxes applied to supermarkets, banks, telecommunications, digital services, large players in the energy sector are gaining ground in EU Member States and this court does not object to it in principle.
“However, this position of the ECJ cannot be seen as a ‘green light’ for the introduction of sectoral turnover taxes, as the court only assesses the compatibility of these taxes with EU law, and a lot depends on how EU Member States formulate their specific laws” M. Grajauskas.
The lawyer predicts that the constitutional courts of the EU member states are likely to still consider the question of whether such taxes comply with constitutional principles.
You can find the article (in Lithuanian) here