The EU Commission set the details of the Financial Transaction Tax (FTT) last 14th of Febrary. The approach will tax all transactions with an established link to the FTT-zone, being the rates 0.1% for shares and bonds and 0.01% for derivatives.
When applied by the 11 Member States, this Financial Transaction Tax is expected to deliver revenues of 30-35 billion euros a year.
This proposal follows EU Finance Ministers’ agreement last month to allow the 11 Member States to move ahead with an FTT under enhanced cooperation.
There are 3 core objectives to the FTT. First, it will strengthen the Single Market by reducing the number of divergent national approaches to financial transaction taxation. Secondly, it will ensure that the financial sector makes a fair and substantial contribution to public revenues. Finally, the FTT will support regulatory measures in encouraging the financial sector to engage in more responsible activities, geared towards the real economy.
The FTT will not apply to day-to-day financial activities of citizens and businesses (e.g. loans, payments, insurance, deposits etc.), in order to protect the real economy. Nor will it apply to the traditional investment banking activities in the context of the raising of capital or to financial transactions carried out as part restructuring operations.
Source
Actualidad