In view of the fact that EU is the third biggest economy in the world, the paper is focused on the impact of tax composition on economic growth in 21 selected EU member states for the period 1995-2020. Using a panel regression method, the paper tried to reveal the relationship between tax structure and economic growth. It is clear from the empirical results presented that distorting taxes, especially personal income and property taxes would show negative effects on the economic growth. Nevertheless, the non-distorting taxes showed positive but insignificant effect to the economic growth. Moreover, looking at the results in distorting taxes omitted in model, it appears that non-distorting taxes have a statistically significant positive influence on the economic growth. As a whole, the results imply that the selected EU member states should reduce the distorting taxes when they design and implement tax policies.
