Press Release: Indirect taxation: the European Commission proposes to abolish capital duty on the raising of capital

The European Commission proposes a phasing out of capital duty by 2010 in order to support the development of EU companies. Capital duty is an indirect tax levied on contributions of capital for capital companies and restructuring operations involving capital companies. Given its detrimental economic effects, it is an obstacle to economic growth. Today, only 7 (Greece, Spain, Cyprus, Luxembourg, Austria, Poland and Portugal) of the 25 Member States continue to levy it.