The Labour Party fears that a European Commission proposal for a common corporate tax base will usurp countries’ right to set their own tax rates.

The stand was reiterated yesterday by the party’s finance and economy triumvirate – Karmenu Vella, Charles Mangion and MEP Edward Scicluna – during a meeting with the Malta Business Bureau.

Government has also opposed the European Commission’s proposal.

“Any tax system in Malta has to be growth-friendly rather than a tool for fiscal consolidation,” the three spokesmen said.

They feared that the voluntary nature of the Commission’s proposed directive could give way to a mandatory system, which would work against Malta’s interests.

MBB president George Vella said an analysis of the Commission’s proposal showed that a common corporate tax base would be detrimental to the economy.

He said the proposal would remove the competitive advantage of some EU member states that use corporate taxation as a tool to attract businesses.