Euro parliament votes for Tobin Tax

A FINANCIAL transaction tax should be introduced, according to the European Parliament.

The Parliament voted for the tax as part of a session into innovative financing.

The CBI said it had “serious concerns” about its potential introduction.

“This would hamper the EU’s long-term competitiveness as a leading centre for financial services companies, and ultimately have a negative impact on jobs and growth,” said CBI Brussels director Sean McGuire.

“The IMF has already rejected the idea of an FTT because it will ultimately fall on consumers, as businesses pass on the extra cost burden by increasing prices.”

EC commissioner for taxation, Algirdas Semeta, warned it would be “premature” to introduce an EU level-only tax.

“In fact, taking into account the potential impact that this could have on European competitiveness, it would be irresponsible to proceed with such a tax without first analysing and fully understanding all the implications,” he added.

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