EU FTT Could Be Reality By 2016

May 6, 2014 Taxation in EU

BRUSSELS – Work is continue on the implementation of a financial transaction tax in Europe, and an amicable conclusion may be reached by the end of the year.

While speaking to the press on May 5th the Minister of Finance of Germany Wolfgang Schaeuble indicated that a joint conclusion may soon be reached by all involved parties in the discussion over the long-standing proposal to implement a financial transaction tax in 11 European countries.

According to Wolfgang Schaeuble, representatives of all 11 participating countries are currently continuing negotiations to decide on an outline for implementation of the tax within days, with an aim to come to an agreement on the final details of the tax by the end of the year.

The Minister conceded that due to the international nature of the tax and an array of legal and political issues, the FTT may initially be less encompassing than envisioned in initial plans, and may only apply to selected types of stock and derivative transactions, and not on all types of financial transactions.

Shortly after the announcement, some political experts came forward to suggest that if an agreement can be reached this year on how the tax will be implemented, then the new tax regulations on financial transactions in the first 11 countries may come into force as early 2016.

The proposal for a transaction tax has faced much controversy since it was first raised in 2012, with claims that the tax will lead to reduced financial activity and increased capital flight globally, and so far only Austria, Belgium, Estonia, France, Germany, Greece, Italy, Portugal, Slovakia, Slovenia, and Spain have taken up the call for the new tax and are continuing to work towards making the proposal a reality.

Photo by: Images Money