The EEC Minister Timur Suleimenov: "There are enough junction points for the two integration projects of the EAEU and the EU, for example, application of the same principles of taxation"

The EEC Minister Timur Suleimenov: "There are enough junction points for the two integration projects of the EAEU and the EU, for example, application of the same principles of taxation"

On July 2, in Brussels (Belgium) at the 11th annual Eurasian Tax Forum the Member of the Board - Minister in charge of Economy and Financial Policies of the Eurasian Economic Commission Timur Suleimenov stated the need to deepen the interaction of the Eurasian Economic Union (the EAEU) with the European Union (the EU).

The Forum took place from June 30 to July 2 in Brussels, at the headquarters of the World Customs Organization (WCO). It was attended by representatives of the Eurasian Economic Commission, the tax authorities of the Member States of the Eurasian Economic Union, the European Union and the International Tax and Investment Centre (ITIC).

The forum addressed the problematic issues of regional trading blocs in the light of globalization of economies, minimization of conflicts and polarization in the world of competing trading blocs.

Participants of the Forum also discussed the idea of​ "integration of integrations" within the framework of cooperation between the EAEU and the EU. Particular attention was paid to activation of the eastern direction of development of the Eurasian Economic Union. As the Minister in charge of Economy and Financial Policy of the EEC emphasised, there are enough junction points for the two integration projects, as trading blocs of the EAEU and the EU, in terms of international trade rules, as of now apply the same principles of taxation. The essence of these principles is protection against discrimination, double taxation and unfair competition. Timur Suleimenov noted that thanks to the EAEU only one customs border is left between East and South Asia and the European Union.

The Minister of the EEC expressed the opinion that the project "Silk Road Economic Belt" implemented by the Eurasian Economic Union in cooperation with the People's Republic of China would add an additional economic momentum to the development of the Union. "The participation of the Member States of the EAEU in this project will allow creating effective economic space from the Atlantic to the Pacific," the speaker of the EEC stated. In addition, according to Timur Suleimenov, the functioning of the Eurasian Economic Union itself would be a powerful impetus for the economic development of the Central Asian region, given the prospects for enhanced cooperation of the Member States of the EAEU with major international trading partners.

At the Forum, it was also said that WTO, due to the rules of granting the national treatment for trade, did not include taxation in its main priorities. Moreover, WTO applies principles of interaction of legal regulation in taxation with legal regulation in trading of goods, which should be reflected in national tax codes of WTO Member States. At the same time, in the EAEU, whose regulatory practice incorporates WTO rules and regulations, the principle of tax sovereignty is retained, which does not contradict the principles of discrimination, double taxation and unfair competition.

Participants of the Forum also discussed improvement of tax administration, information exchange and harmonization of excise rates.

Source: Eurasian Economic Commission official web-site