EU to impose taxing profits from frozen Russian central bank assets


(MENAFN) The European Union (EU) is reportedly contemplating a proposal to impose taxes on profits derived from more than 200 billion euros (USD218 billion) of frozen Russian central bank assets. This initiative aims to contribute to Ukraine's reconstruction efforts, notwithstanding concerns expressed by several member states, according to Bloomberg News. The European Commission is expected to unveil the proposed legislation on December 12, outlining an unexpected tax on profits generated from these frozen assets.

As per Bloomberg's sources, the plan seeks to address the lingering issues raised by member states while emphasizing that the EU proposal will not encroach upon national tax policies or other measures. The proposal has stirred division among the EU's 27 member countries, with Belgium, Germany, France, Italy, and Luxembourg cautioning against an expedited process and advocating for a more measured approach.

In response, these countries reportedly communicated to the ambassadors of other EU nations last week, highlighting the necessity for the European Commission, the executive arm of the bloc, to initiate an informal document. The purpose of this document would be to further refine the various options on how to utilize the profits from frozen assets. The cautionary stance of these member states stems from their belief that it is premature to submit a legal proposal at this juncture. The proposed taxation of frozen Russian central bank assets represents a delicate diplomatic and economic matter within the EU, reflecting the complexities and divergent perspectives among member states.

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