Tobin tax is likely, says banking chief

Tobin tax is likely, says banking chief

British Bankers' Association Angela Knight says she expects financial transaction tax to be introduced

THE UK is likely to adopt a tax on all financial transaction following pressure from the European Commission, the head of the British Bankers’ Association (BBA) has said.

BBA chief executive Angela Knight told a conference at the Saïd Business School in Oxford she expects the EU to adopt the tax, which will impose an 0.1% charge on transactions involving EU financial institutions. “If I had to make a bet, I would bet that the FTT will be adopted,” she said.

The EC last week issued a directive on the tax, popularly referred to as the Tobin Tax. The UK has said that it will resist any attempts to introduce the tax on a non-global scale.

Manfred Bergmann, the director for indirect taxation and tax administration at the European Commission, told delegates that the EC was determined to push ahead with the proposals.

Efforts at imposing a levy on the financial sector at a national level would not be effective, Bergmann said. “But EC efforts will be more than the sum of its parts,” he said.

The tax would not particularly affect the City of London but would clamp down on high frequency traders that offer little to the wider economy, Bergmann said. These traders partake in a number of small transactions with little marginal profit. The tax would simply encourage fewer transactions at a higher profit margin, he said.

Bergmann said he hoped the tax would raise 55bn Euros a year. It was not yet decided how the revenue would be shared out, he added.

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

8m

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

12m

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

7m

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

8m

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource