Austria Pushes for European Transaction Tax

September 7, 2009 International Tax CooperationTaxation in AustriaTaxation in EU  No comments

The Austrian government has voiced their opinion in favor of instating a Europe spanning transaction tax.

Following a meeting of the Austrian Council of Ministers, the Austrian government has voiced its full support of creating a financial transaction tax system spanning the entirety of Europe. The idea was floated to the Austrian government in a paper written by Josef Pröll, Austrian Finance Minister. The aim of the financial transaction tax would be to rein in speculation on the financial markets and create a more stable currency markets. As set forth by Josef Pröll, the transaction tax could generate €2 billion in Austria alone.

This is not the first time that the Austrian government has greeted the idea of a transaction tax, having received unanimous support for it when raised earlier this year in April. Further, the United Kingdom saw similar sentiment voiced recently when Lord Adair Turner, Chairman of Britain’s Financial Services Authority proposed the same idea. The thought of a financial transaction tax has also been popular in France for a number of years, having first been raised in 2001 and once again this year, in late May.

No specific mention was made in regards to what will happen to the gains from any introduced financial transaction tax in Austria. Although, G20 finance ministers did meet on the 5th of September to discuss the options regarding the implementation of a worldwide transaction tax, the earnings from which would be used in the aid of anti-poverty campaigns.

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