The European Commission has published a report on tax reforms in EU Member States, identifying that Member States have made progress towards improving their tax systems but many still face challenges.

The report provides an overview of recent tax reforms in Member States and an indication of their performance in major areas of tax policy. Reducing the tax burden on labour was highlighted in the report as one of the most important challenges for many Member States. Other challenges included the design of housing taxation systems, tax compliance particularly in VAT, the preferential treatment of debt in corporate taxation, the efficiency of tax administrations and improving fairness,