The Commission has set out its views on taxes for the financial sector. It supports a Financial Transaction Tax (FTT) at a global level but also suggests a Financial Activities Tax (FAT) within Europe. This way, it says, it can target both those involved in transactions and the profits and remunerations of financial companies. It thinks there are good grounds for introducing the tax, including that the financial sector has taken a lot of public money and should pay for rebuilding public finances, that a bank tax would complement regulatory initiatives to reduce the volatility of the markets and that the tax would help ensure the banking sector is not under-taxed compared to other sectors. The Commission has drafted a Communication which it will present to EU Finance Ministers on 19 October, and an EU position paper to the G20 Summit in November.
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Commission outlines financial taxes
- Dentons
- Robert Finney
- European Union
- October 15 2010
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