The coronavirus crisis continues to negatively impact many labour-intensive business sectors that are key to European employment. It is important that viable businesses in these sectors are supported by national governments to ensure Europe’s social stability and economic health.
The tax system has an important role to play in providing this support that is cost effective for governments as it uses existing data and systems. In this paper we highlight measures for both direct and indirect tax that governments should consider.
Some of these measures have cross-border impacts so we also highlight the role of the European Commission and international organisations in sharing best practice and coordinating efforts.
Our accompanying paper, Long-term tax policy changes for a sustainable recovery, examines options for building a modern, robust and fair tax infrastructure fit for Europe’s future.