EU Transaction Tax Coming Closer to Reality

January 28, 2015 Taxation in EU

BRUSSELS – The proposed tax on financial transactions executed in Europe has taken one more step towards becoming reality, as the participating announce their commitment to enact a wide-base, low-rate tax by the end of 2017.

In a joint statement issued on January 27th the ministers of finance of Austria, Belgium, Estonia, France, Germany, Italy, Portugal, Slovakia, Slovenia and Spain confirmed their renewed commitment to implementing a multinational financial transaction tax.

The financial transaction tax was proposed by France and Germany in 2012, but its implementation has suffered from setbacks, as participating countries have continually failed to agree on how the measure is to be implemented, and what types of transactions should be exempt from the measure.

However, in the joint statement the ministers of finance claimed that they have now come to an agreement that the tax should be levied on the broadest possible lit of transactions, but at a low rate of tax.

Assessments are now being carried out to evaluate the real-world economic impact that a wide-base, low-rate transaction tax will have in the participating countries, and in other countries of the EU.

It is currently estimated that if all principal decisions about the tax can be made soon, the tax could come into full effect by January 1st 2017.

Photo By: Allan Ajifo