The European Commission today proposed the creation of a Europe-wide value-added tax as part of a package of proposals to find new sources of revenue for the next European Union budget.

The EU's executive arm unveiled proposals to collect funds, including taking a share of a financial transaction tax, the auctioning of greenhouse gas emission allowances or an EU charge related to air transport.

The commission also suggested 'a separate EU VAT rate, a share of an EU energy tax or a share of an EU corporate income tax.'