EU: ECOFIN Council approves biannual report on tax issues
Including discussion of national temporary tax measures to address increased energy prices and need for coordinated EU action
June 22, 2026
The Economic and Financial Affairs Council (ECOFIN Council) on June 12, 2026, approved a report to the European Council, detailing progress made with respect to various tax-related initiatives under the Cypriot Presidency of the Council of the EU (first half of 2026).
Key takeaways include:
- Tax decluttering and simplification: The report refers to the March 2025 ECOFIN Council conclusions on the tax decluttering and simplification agenda, which called for a review of existing legislation with the aim of eliminating outdated and overlapping rules, as well as enhancing clarity and consistency of EU tax legislation. In addition, the report refers to the 2026 Commission work program aiming to cut administrative burdens by 25% overall and 35% for small and medium enterprises (SMEs) through a new series of simplification initiatives, including a legislative proposal for an Omnibus on Taxation, which is expected to be published on June 24, 2026. Furthermore, the report notes that, in April 2026, the European Parliament, the Council of the European Union and the European Commission (EC) agreed on a roadmap to achieve “One Europe, One Market” that includes a target to agree on the omnibus on taxation by the fourth quarter of 2027.
- Windfall profit taxes: According to the report, EU country delegations discussed national temporary tax measures to address the recent increases in energy prices (in particular, prices for imported fossil fuels) as well as the need for coordinated EU action. With respect to the latter, the report notes that delegations raised concerns regarding the potential impact on EU member states’ budgets and the compatibility with national energy taxation system.
- OECD/United Nations: The report notes that EU country delegations were informed on the implementation of the January 2026 side-by-side agreement, the state of play of the latest work on the implementation of the Pillar Two rules as well as other relevant workstreams of the Inclusive Framework on BEPS. The report further notes the progress made on the UN Framework Convention on International Tax Cooperation. Focus areas of the UN work include the taxation of income from cross-border services, and the prevention and resolution of tax disputes.
- Tax good governance: The report also notes that, in March 2026, the Commission updated EU country delegations on the negotiations on tax good governance provisions in EU agreements with non-EU countries.
Read a June 2026 report prepared by KPMG’s EU Tax Centre