A financial transaction tax on EU members has been proposed by the European Commission to take effect at the start of 2014. This proposed tax is expected to raise about 57 billion euros (US $79 billion) a year, and would be levied at a rate of 0.1% on all transactions between institutions when at least one party is located in the EU. According to Algirdas Semeta, EC commissioner for taxation, customs, anti-fraud and audit, the tax will deliver “a fair contribution from the financial services sector.” This sector is viewed as having contributed to the current “economic crisis” and as “under-taxed” compared with other sectors. Germany, France, Austria, Belgium, Norway and Spain support this tax in order to show their citizens that they are serious about addressing the European financial crisis.
The UK, however, has said it would “any resist” any such tax imposed on its citizens that was not introduced globally. London is expected to be hardest hit by the tax in the EU – with London officials estimating that about 80% of the revenues of the Europe-wide financial tax would come from their city. Further, the tax could prompt banking transactions to be handled outside of the EU in order for financial institutions to avoid the tax.
For more information, see “European Commission financial tax opposed by UK,” available at http://www.bbc.co.uk/news/business-15090761.