Plans for harmonising taxes on energy consumption and the sale of digital products are on the agenda of the monthly Ecofin meeting of European Union finance ministers.

The proposals, made by Sweden, which currently holds the EU presidency, are part of a tax package designed to prevent what is seen as unfair tax competition between member states.

UK Chancellor Gordon Brown, however, has already signalled that he will veto the proposals.

Analysts say that any UK approval of EU-wide tax changes just two days before a general election would open up Labour to charges of giving in to "meddling from Brussels".

Digital VAT

Companies from outside the EU, selling digital products such as software, music or pictures, currently do not pay value-added tax (VAT) on their products, which gives them an advantage over their EU rivals.

The union wants to force international firms to register in one EU country, where they would pay VAT for all sales to consumers throughout the EU.

Business-to-business deals, though, would be exempt, in line with existing legislation.

The UK wants a moratorium to exempt sales to consumers from VAT.

Energy taxes

The other big issue is energy taxes. Many EU members hope that energy taxation is the key both to a better environment and liberalisation of the energy market.

Progress on this issue is likely to be slow, as France is reluctant to open up its energy sector to competition. Countries such as Germany put more emphasis on "green taxes" to force down energy consumption.

And the UK argues that energy markets should first be liberalised before any harmonisation of taxes.

Any solution to the issue is unlikely to arrive before the EU's next summit in Gothenburg in the middle of June.

UK vs European Commission

Another issue on the Ecofin table will bring the UK in direct confrontation with the European Commission.

The two sides are quarrelling over how to implement a recent EU compromise on the "withholding tax", where savings are taxed at source, making it more difficult for tax dodgers to hide any illegal income.

The EU hopes to persuade foreign governments - especially Switzerland, the United States, Liechtenstein, Monaco, Andorra and San Marino - to exchange information about income from investments held there by EU residents.

The European Commission wants the right to talk to these governments directly on behalf of the European Union.

The UK, which successfully vetoed an EU-wide withholding tax and forced through an information sharing scheme instead, is trying to thwart this ambition.

Instead, it wants to see a group formed by member governments to do the talking.