Measures aimed at eliminating rampant tax evasion must not go beyond the stated objective, to the extent of paving the way for tax harmonisation, Labour MEP Alfred Sant has insisted.

He told the European Parliament that tax harmonisation goes against Malta’s interests and that of peripheral regions and islands with limited endowments within the European Union.

Dr Sant made his statement in an explanation of the vote while the European Parliament was discussing the Preparation of the Commission Work Programme 2016.

He said that the Commission Work Programme rightly defined as an important objective the elimination of rampant tax evasion and avoidance, as well as aggressive tax planning by multinational corporations. Measures that, in a transparent and consistent manner, sought to attain this goal in the context of a level playing field were desirable.

However, he added, a very serious problem arose when the measures contemplated to eliminate rampant tax evasion went beyond the stated objective and prepared the ground for tax harmonisation.

"This goes against the interest of peripheral regions and islands within the Union."

The resolution was passed with 408 votes in favour, 182 against and 23 abstentions. Dr Sant voted in favour on the final vote of the resolution but he voted against the paragraph mentioning the setting up of a mandatory common consolidated tax base.