The debate over tax harmonisation in the European Union is returning forcefully to the forefront, driven in part by the new directive on tobacco products. For Donato Raponi, however, the critical issue is not only the rules that are introduced, but above all their effective and consistent implementation in practice.
With nearly four decades of experience at the European Commission, the Italian economist and Partner at D. Raponi International Tax Consulting — who also attended the 11th Delphi Economic Forum — speaks to Naftemporiki about the limits of harmonisation, the challenges of implementing rules and the risks posed by tax policies that ignore the realities of the economy.
He places particular emphasis on the ongoing European-level discussion surrounding the taxation of tobacco products, in light of the relevant directive proposed by the European Commission.
“The EU must set boundaries — not regulate everything”
The discussion around a more unified tax framework within the EU is once again gaining momentum, yet Donato Raponi draws clear boundaries.
“The European Union should function as a level playing field. It should set the basic limits and intervene only when there are distortions in competition or problems affecting the functioning of the single market,” he stresses.
As he explains, full harmonisation is not always the answer. “If such problems do not exist, why harmonise everything? Member states should retain flexibility.”
The European Commission itself, he adds, now appears to recognise the need for less bureaucracy, and even for the “correction” of previous interventions, particularly in the area of compliance.
Greece: Progress made, with implementation the next step
Drawing on his personal knowledge of Greece — and his family ties to the country, as his wife is Greek — Raponi acknowledges the significant progress achieved in recent years.
“Greece has made substantial progress, particularly thanks to digitalisation. The next major step is even more consistent implementation of the rules in everyday practice,” he notes.
He also recalls a report he wrote some 30 years ago on the Greek tax administration, which he describes as “very negative”. Today, however, the picture has improved considerably.
Tobacco and taxation: “Overtaxation leads to a shadow economy”
Raponi is particularly outspoken on the issue of tobacco taxation, focusing on the relevant European directive currently under discussion. He criticises an approach that does not sufficiently differentiate taxation between traditional and alternative products.
“If you do not tax less harmful products at a lower rate, you provide no incentive for consumers to switch,” he underlines.
He cites Sweden as an example, where differentiated tax treatment contributed to a significant reduction in smoking-related deaths.
By contrast, excessive taxation can produce the opposite effect. “When you increase taxes excessively, you strengthen the illegal market and ultimately lose revenue.”
His reference to France is telling: “More than 50% of the market is now illegal.” And this, he notes, also creates risks for public health.
“Compliance must be easy”
According to Raponi, simplicity is the cornerstone of an effective tax system. “Compliance is not voluntary — it is mandatory. But it must be easy. If it is not, citizens will not comply,” he says.
In this area, digitalisation is a crucial tool, provided it is used to facilitate rather than burden businesses. Despite the remaining weaknesses, his final message for Greece is a positive one. “Compared with 30 years ago, the progress has been substantial. There are reasons to be optimistic,” he concludes.
As the European-level discussion makes clear, the objective remains straightforward: less bureaucracy, greater stability and — above all — a state that applies the rules consistently.
Για να εμφανίζονται περισσότερα άρθρα της Ναυτεμπορικής στις αναζητήσεις σας εύκολα και γρήγορα, πρέπει να προσθέσετε το site στις προτιμώμενες πηγές σας. Μπορείτε να το κάνετε πηγαίνοντας εδώ.
