EU Member States lose EUR170 billion a year due to tax avoidance, according to a report on EU tax havens discussed at the 50th Global Economic Forum Davos this year.

The report, which was drawn up jointly by the Polish Economic Institute (PIE) and Bank Gospodarstwa Krajowego (BGK), also found that overall tax losses for EU countries over seven years add up to EUR1,190 billion - 25 percent more than the whole EU budget for 2014-2020 (EUR960 billion).

The problem is exacerbated by the EU member states that use unfair practices to enhance the artificial shifting of profits of multinational companies, the report said.