TaxCorporate TaxEuropean businesses criticise Tobin Tax proposals

European businesses criticise Tobin Tax proposals

Business leaders say financial transaction tax could be "disastrous" for Europe

EUROPEAN BUSINESS leaders have called for plans to introduce a Tobin Tax in the European Union (EU) to be scrapped.

EU governments, including Germany and France, have expressed their wish to introduce a financial transaction tax, which will impose a 0.1% levy on all transactions between financial institutions within Europe.

In a letter to the Financial Times, representatives of the business committees on the Organisation for Economic Co-Operation and Development and the International Chamber of Commerce, came out against the tax.

They said it could be “disastrous” for Europe and reduce GDP by more than 2% in member countries.

“While an FTT would indeed raise some government revenues in the short term, it would immediately negatively affect the economy and not foster growth,” the letter said.

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