EU Transaction tax May Still Go Ahead

January 27, 2017 Taxation in EU

Transaction tax on stocks and derivativesGENEVA – The pan-EU transaction tax may still be enacted, despite having lost momentum since its proposal nearly 5 years ago.

The long-debated and highly controversial plan to implement a multinational transaction tax in Europe is “within reach” according to the European Commissioner for Economic and Financial Affairs, Taxation and Customs Pierre Moscovici.

The proposed tax would see all financial transactions conducted in participating countries taxed at 0.1 percent, if the transaction involves stocks, and 0.01 percent if the transaction involves derivatives.

The tax was first proposed in 2012, in an effort to raise funds and address the issues which are believed to have caused the global financial crisis in 2008.

The Commissioner explained that “…a deal is within reach, if we only consider technical and legal issues,” however he did concede that concentrated political will was still required in order to see the tax implemented.

Currently, the only countries which are still considering the tax are Germany, France, Italy, Austria, Belgium, Greece, Portugal, Slovakia, Slovenia and Spain.