Financial Transaction Tax Finally a Reality

January 23, 2013 Taxation in EU

piles-o-cash moneyBRUSSELS – The possibility of a pan-European financial transaction tax has taken a tangible step towards reality, as permission is granted to pursue a cross border tax on financial transactions.

After month of political wrangling and discussions, the EU’s efforts to enact a tax on financial transactions has come to fruition with an announcement on January 23rd that 11 EU countries have been granted permission to pursue enhanced cooperation in a joint effort to introduce the tax.

At the moment Germany, France, Belgium, Estonia, Greece, Spain, Italy, Austria, Portugal, Slovenia and Slovakia have come forward to try and implement a multinational transaction tax, and other countries will be free to join the program if they wish to do so.

The exact details of the tax are yet to be finalized between the countries, but earlier discussions indicate that the measure will probably involve a levy which will be charged on the value of transactions involving bonds, share, equities, derivative products and other financial products.

Explaining the significance of the proposed tax the commissioner of taxation for the EU Algirdas Semeta said such measures will “…help recapture some of the one trillion euros a year we are losing in public revenues,” and “… will ensure fairer taxation at the individual, corporate, member state and global level.”

However, despite the widespread optimism over the possibility of the new tax, the minister of finance of Ireland, and current chair of finance of the EU ministers’ meetings, Michael Noonan said that there is not yet any deadline on when the tax could be finally enacted.

Photo by massdistraction