The EU is planning new taxes on big business, e-waste, and imports—here’s what it means

The EU is planning new taxes on big business, e-waste, and imports

Brussels is preparing to unveil a sweeping proposal to impose a new levy on large companies operating in Europe, as part of a push to unlock independent funding streams for the European Union’s €1 trillion-plus common budget. The tax plan—dubbed the “corporate resource for Europe”—would target all companies with net turnover above €50 million, regardless of where they are headquartered, according to a draft proposal seen by the Financial Times.

The move marks one of the most ambitious attempts yet to reshape how the EU finances its sprawling budget, which funds everything from agriculture to defense to climate goals. It comes as the European Commission confronts rising interest costs on EU debt and growing demands for shared defense and economic resilience.

A tiered levy for big business

Under the draft proposal, to be formally unveiled next week, the new corporate tax would apply a “bracket system”, meaning that companies with the highest net revenues would pay proportionally more. The levy would be calculated on net turnover—gross revenues minus taxes and subsidies—and would apply to both EU-based firms and foreign multinationals that operate within the bloc.

If adopted, it would mark a radical shift in EU financing. Currently, most of the union’s funding still comes from member-state contributions, with only a small share raised from independent sources like customs duties or emissions trading.

New taxes on e-waste, ecommerce, and tobacco

The draft outlines several additional levies designed to supplement the bloc’s budget. These include:

• A tobacco excise share, requiring member states to raise minimum duties and channel part of the increase to Brussels.
• A fee on non-recycled electronic waste, such as discarded mobile phones and home appliances.
• A handling charge on long-distance ecommerce packages, aimed largely at imports from China and other non-EU countries.
• While the precise amounts are still under discussion - marked as brackets in the draft the goal is clear: create reliable, own-source revenue for the EU amid intensifying fiscal needs.

The proposal will likely face fierce opposition from the EU’s more fiscally conservative nations, including Germany, the Netherlands, Austria, Sweden, Denmark, and Finland—long skeptical of expanding the EU’s tax-raising powers. Adoption of the new funding package would require unanimous approval from all 27 member states, giving holdouts significant leverage to water down or block elements of the plan.

Corporate backlash is also expected. Many European businesses are already grappling with sluggish growth, high energy costs, and intense global competition. JPMorgan CEO Jamie Dimon warned this week that European companies risk falling behind their U.S. and Chinese rivals—highlighting concerns about further tax burdens.

Scrapped ideas and climate revenue

Some previously discussed revenue ideas appear to have been shelved, including a carbon tax on home heating and road transport, entry fees for the EU’s border system, and a digital services tax opposed by the U.S.

The Commission is, however, counting on climate-related funding. It plans to increase the non-recycled plastic waste fee and already receives a share of revenue from the EU Emissions Trading System (ETS). It also expects about €1.5 billion in the first year from the Carbon Border Adjustment Mechanism (CBAM), a tax on carbon-intensive imports starting in 2026.

What happens next

The official proposal is expected next Wednesday, alongside a draft of the EU’s next seven-year budget. While details may still change, the direction is clear: Brussels wants more power to raise its own money—and less reliance on national governments. Whether the political support materializes remains uncertain, but the proposal signals a growing urgency to build a more autonomous and resilient EU fiscal system