The EU Regulatory Scrutiny Board has issued a negative opinion on the European Commission's impact assessment for a proposed new EU tax framework, requiring the Commission to revise and resubmit the assessment before the proposal can advance. The Board found the analysis of economic and administrative impacts insufficient, and requested a clearer problem definition, quantified costs and benefits, and a stronger justification for the chosen policy option. The opinion, dated 29 June 2026, was received by the Council on 25 June 2026.
The negative opinion blocks the Commission from formally tabling the legislative proposal until the impact assessment is strengthened and passes a second Board review. This procedural setback delays a tax initiative that would affect businesses and national tax authorities across the EU. The Commission must now rework the assessment, addressing the Board's specific criticisms: insufficient data on compliance costs for companies, lack of quantified benefits for tax harmonisation, and inadequate comparison of alternative policy options.
The Board's rejection underscores the tension between the Commission's ambition to introduce a new EU-level tax and the requirement for robust evidence of its impacts. The Commission had aimed to present the proposal as part of broader efforts to modernise EU taxation and combat tax avoidance. However, the Board's opinion signals that the current analysis does not meet the standards of the EU's better regulation agenda.
EU businesses face continued uncertainty over potential new tax obligations and compliance costs, as the delay postpones clarity on the framework's scope and burden. National tax authorities in Member States may see their administrative workload increase if the proposal proceeds, but the delay gives them more time to prepare. The European Commission must invest additional resources to revise the impact assessment, potentially slowing other legislative priorities. EU taxpayers could ultimately benefit from a more thoroughly assessed tax framework that minimises unintended economic distortions.
The Commission is expected to resubmit the revised impact assessment to the Regulatory Scrutiny Board within months. If the Board issues a positive opinion, the Commission can then adopt the legislative proposal and send it to the European Parliament and the Council for negotiation. The Council's receipt of the negative opinion suggests it will monitor the Commission's response closely, as Member States have divergent views on new EU tax powers.