The topic should be discussed promptly in Ecofin in order to present the thoughts of the group of states participating in the enhanced cooperation to all Member States. Discussions are still ongoing as to what specific form this should take. There is also agreement that the revenue generated should be distributed by way of a compensation mechanism among those states wishing to introduce the tax. There is consensus among the ministers that the FTT should continue to be negotiated according to the Franco-German proposal. On 11 March 2019 the finance ministers of the states participating in enhanced cooperation in this area met in the margins of the Ecofin meeting. Revenue levied nationally should be distributed among the Member States according to a distribution mechanism to be further defined. The revenue should flow into the EU budget or the still-to-be-created euro area budget. The tax rate should be no less than 0.2 per cent. German finance minister Schäuble wants tax to apply to all members in spite of UK opposition. Initial public offerings, market making and intraday trading should not be taxable. Berlin to push for financial transactions tax to cover all of EU. The tax should be levied on the transfer of ownership when shares of listed public limited companies are acquired. ![]() It proposes that a French-style FTT be levied on the acquisition of shares of listed companies whose head office is in a Member State of the European Union and whose market capitalisation exceeds EUR 1 billion on 1 December of the preceding year. In January 2019 Germany and France fleshed out their plans and presented a joint position paper: The revenue generated could be used to finance European expenditure. The FTT in place in France, which is mainly aimed at the taxing of transactions involving domestically issued shares, should serve as an example. Their aim is now to press ahead and conclude work on the tax swiftly. ![]() Member States participating in the enhanced cooperation.įollowing the lack of a breakthrough in the negotiations on the FTT over a number of years, Germany and France decided at their meeting in Meseberg on 19 June 2018 to inject new momentum into the stalled negotiations and set themselves the objective of successfully concluding the negotiations at EU level. In that context, theĮuropean Commission put forward an (almost identical) proposal for a Directive for the Germany, Greece, Italy, Portugal, Slovakia, Slovenia and Spain. Since the proposal did not secure a majority at EU level, from 2013, deliberations on the introduction of an FTT continued in the framework of enhanced cooperation with Austria, Belgium, Estonia (until December 2015), France, As far back as 2011, the European Commission proposed a harmonised financial transaction tax (FTT) for the EU Member States. ![]() State of play of the financial transaction taxĪ tax on the financial sector has been under discussion at European level for many years. On the agenda for the Ecofin meeting on 14 June 2019, to be prepared in Coreper on 12 June 2019. It was submitted to the chair of the German delegation in connection with the corresponding item Delegations will find in the annex a progress report on the EU financial transaction tax.
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