The EU plans to tax companies with over €50 million in net turnover

The European Commission is preparing to unveil a proposal to impose new levies on large companies operating in the bloc, as part of an effort to shore up its €1 trillion-plus common budget and respond to mounting demands for defense, debt servicing, and industrial policy.

A draft of the plan, reportedly seen by the Financial Times and set for formal release next week, outlines a new “corporate resource for Europe” — a tax on all companies with more than €50 million in annual net turnover, regardless of where they are headquartered.

The measure is part of a package of revenue-raising tools the Commission wants to include in the EU’s next seven-year budget cycle. If approved, the new corporate tax would mark a significant shift in how the bloc funds itself.

A progressive tax on big business

According to the draft, the new corporate levy would be progressive, with a bracket system that requires companies with higher net revenues to pay more. The tax would apply to all large companies operating in Europe, including non-EU multinationals.

The Commission defines “net turnover” as revenue after accounting for taxes and subsidies, which aims to capture the real economic footprint of a business within the region.

This proposed change has already drawn criticism from some member states and business groups, who warn that it could hinder economic recovery and push companies to shift operations elsewhere.

Jamie Dimon, CEO of JPMorgan Chase, said in a recent meeting with European business leaders that firms in the region are “losing” ground to US and Chinese competitors due to a mix of sluggish growth and high energy costs.

Even so, EU officials argue the bloc can no longer rely solely on national contributions.

New levies on tobacco, e-waste and e-commerce

In addition to the corporate tax, the Commission plans to introduce other revenue streams to diversify the budget’s base. Among the most notable is a proposal to increase the EU’s share of tobacco excise duties. Another plan targets the growing mountain of electronic waste, with a charge to be applied to uncollected e-waste like discarded smartphones, laptops, and household appliances.

Brussels is also considering a handling fee on long-distance e-commerce packages, a measure widely seen as targeting low-cost imports from Asia. France has already proposed a handling fee for parcels worth less than €150, targeting platforms such as Temu and Shein, and arguing that they exploit customs loopholes.

Alongside these initiatives, the EU also expects to raise more revenue through existing mechanisms.

Some more contentious ideas have been quietly dropped or delayed. These include a carbon tax on household heating and road transport, entry fees linked to the EU’s digital border system, and a digital services tax that has drawn strong opposition from the United States.

Political pushback from net contributors

The biggest challenge facing the Commission is not designing the taxes themselves, but securing political agreement. Any new blanket tax must be approved unanimously by all 27 member states.

Countries such as Germany, the Netherlands, Austria, Sweden, and Finland, which are net contributors to the EU budget, have a long track record of resisting moves that could increase their financial burden or reduce national fiscal sovereignty.

The Commission is expected to formally unveil the proposal on Wednesday. While the final figures remain in brackets and may shift in the coming weeks, the political intent is clear. Europe wants a bigger and more flexible budget, and it is willing to test the limits of what the member states will accept to make that happen.

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