EU countries and their citizens want the financial sector pays its fair share of taxes.
That is why the EU countries’ tax administrations are looking at ways to tax the financial sector, for example by introducing bank levies and national financial transaction taxes.
The Commission's proposal for a Financial Transaction Tax (FTT) aims at harmonising uncoordinated Member States’ financial tax initiatives, which could otherwise lead to fragmentation of the Single Market for financial services, and to double taxation taking place.
On 14 February 2013, the European Commission made a proposal for a Council Directive on enhanced cooperation in the area of financial transaction tax.
As requested by the eleven Member States involved, this proposal mirrors the scope and objectives of the original Commission FTT proposal from 2011, while also strengthening the anti-relocation and anti-abuse rules (see IP/13/115).
Annual revenues are estimated to be around EUR 30 to 35 billion, or 0.4 to 0.5% of the GDP of the participating Member States.
Discussions in the relevant Council working group started immediately after the Commission proposal was tabled. In these discussions, all EU Member States can participate, but only the 11 participating Member States will have the right to vote and agree on the Directive.
Once agreed upon at European level, participating Member States will have to transpose the Directive into national legislation.