EC Tax Harmonization: the German Perspective

Rolf Peffekoven

Chapter 7 in Tax Harmonization and Financial Liberalization in Europe, 1992, pp 89-98 from Palgrave Macmillan

Abstract: Abstract In the Federal Republic of Germany (FRG), the harmonization of taxation has been continuously discussed since the signing of the EEC Treaty (1957). At first, the harmonization of the system of turnover taxes was of primary interest, because until 1967 the FRG levied a turnover tax in the form of an all-stage gross turnover tax (the tax base was total turnover of taxable activities valued at gross sales prices). This system of turnover taxes generated negative effects of tax cumulation, which led to distortions in competition and to vertical concentration. It also prevented exact tax border adjustments. The tax-deductions for exports and the taxation for imports were done on the basis of flat rates. Consequently, the FRG was continuously accused of setting this flat rate higher than the average domestic tax rate and thus of attaining protectionist effects by appropriate border tax adjustments.

Keywords: Origin Principle; Excise Duty; German Perspective; Excise Rate; Border Adjustment (search for similar items in EconPapers)
Date: 1992
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-22008-3_7

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DOI: 10.1007/978-1-349-22008-3_7

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