In 2011, the European Union proposed an EU-wide FTT that would levy a 0.1 percent tax on the transfer of shares and bonds and a 0.01 percent tax on derivative contracts. By logging in, you confirm acceptance of our POLITICO Privacy Policy. <>stream <>/Metadata 69 0 R/Pages 99 0 R/StructTreeRoot 95 0 R/Type/Catalog/ViewerPreferences<>>> Differences within Belgium’s ruling coalition over a European financial transaction tax cast further doubt on the proposal, which is championed by a group of 10 EU states but opposed by the financial industry. Would you consider contributing to our work? In order to sink the plans entirely, the lobbyist said, a big EU member country like Germany, Italy or Spain would have to come up against it, which looks unlikely at the moment. Explore the live extension of our journalism, The wonk's survival guide to the EU Green Deal. “This is what we hoped would happen and there is a clear direction of travel against the proposal but there’s no guarantee that it won’t happen,” said one senior financial services lobbyist, speaking on condition of anonymity. Finance Minister Johan Van Overtveldt exposed the split by saying last week he would “investigate in the coming weeks or months how to put a stop to this tax” because it threatens the economy and the financial sector. Belgian cabinet ministers are expected to discuss the financial transaction tax on Friday. <>/Filter/FlateDecode/ID[<7522B6F63E1C414EB90C6F03388C88CB>]/Index[105 35]/Info 104 0 R/Length 96/Prev 967240/Root 106 0 R/Size 140/Type/XRef/W[1 3 1]>>stream In-depth reporting, data and actionable intelligence for policy professionals – all in one place. h�bbd```b``����@$��&f?�O�� d�v�ŧ�٢`r%�*�2�@���)[4 H2�4��w|g`��$�Me�?c�'� g>> FTTs usually apply only to select financial instruments and often have varying tax rates depending on the asset type. 108 0 obj A split in the government coalition could push Belgium out of EU negotiations on a Tobin tax. Get all the latest global tax news and analysis sent directly to your inbox. Lacking unanimous approval, an “enhanced cooperation” group of 11 countries agreed to push the project: France, Germany, Italy, Portugal, Spain, Greece, Belgium, Slovenia, Slovakia, Estonia and Austria. Latest news, analysis and comment from POLITICO’s editors and guest writers on French politics. The FTTs differ significantly across countries. The European Commission proposed taxing financial services in 2011, in the wake of the financial crisis. However, negotiations came to a halt due to resistance from several EU member states, and an EU-wide policy has not been adopted. <>stream Today’s map shows which European OECD countries impose a type of FTT. Suite 950 <> A split in the government coalition could push Belgium out of EU negotiations on a Tobin tax. 0 Sources: BNY Mellon, “A Global View of Financial Transaction Taxes (FTT),” 2018, https://www.bnymellon.com/emea/en/_locale-assets/pdf/our-thinking/tax-and-regulatory-client-forum-2019/global-view-of-financial-transaction-taxes.pdf; and Deloitte, “Tax guides and highlights,” 2019, https://dits.deloitte.com/#TaxGuides. %PDF-1.6 %���� Under an FTT, a percentage of the asset’s value is paid in taxes when it is traded. ?�V?Jx$ʓx�®*��˗t�zAG&��F�������A9̊1n���`9 ��l�ˢ��]��. 26 April 2017 . Belgium's Finance Minister Johan Van Overtveldt, Campaigning, lobbying and political influence in the EU. FTTs are sometimes called “Robin Hood” taxes, as the tax burden is predominantly borne by the wealthy. However, a spokesperson for Overtveldt — who is from the Flemish nationalist N-VA — underlined his party’s “reservations concerning the impact of the tax on the real economy, for instance on pension funds.”. Latest news, analysis and comment on defense in Europe and beyond. startxref Some other countries in the group, such as Slovenia, now appeared reluctant too and the withdrawal of two or more countries would sink the proposal, since EU rules require at least nine countries to back such a procedure. Our work depends on support from members of the public like you. Estonia has since withdrawn, arguing that the costs associated with the tax would be higher than the revenues. November 17-18 — POLITICO's Health Care Summit, November 18 — Energy Visions Series – Carbon removal and natural sinks in reaching climate neutrality by 2050, November 19 — Making digital work for SMEs in Europe. Latest news, analysis and comment on elections in Europe and beyond. 139 0 obj Bank of England to buy £150B more bonds as new lockdown starts, France plans new €20B stimulus package ahead of second lockdown, ECB steps up call for EU coronavirus spending package. Help us achieve a world where the tax code doesn't stand in the way of success. endobj Campaigning, lobbying and political influence in the U.K. Latest news, analysis and comment from POLITICO’s editors and guest writers in Europe. 107 0 obj Would you consider telling us more about how we can do better? The tax is a long-standing aim of Belgium’s mainstream parties but is opposed by the right-wing N-VA. Belgian Economy Minister Kris Peeters, from the Flemish Christian Democrats who favor the Tobin tax, said: “We shouldn’t throw out the baby with the bathwater.” He urged Van Overtveldt to negotiate its implementation “in a constructive manner.”, Denis Ducarme, parliamentary whip of Michel’s liberals, said the party would stand by the plan: “We, as liberals, are very attached to this tax. POLITICO’s weekly newsletter on campaigning, lobbying and political influence in the U.K. Log in to access content and manage your profile. 106 0 obj Latest news, analysis and comment on security in Europe and beyond. Since the 2008 financial crisis, financial transaction taxes (FTTs) have been debated as a potential instrument to address financial market instabilities and as a source for tax revenue. endstream He now plans to underline Belgium’s support for the so-called “Tobin tax” in parliament on Tuesday morning. In order for Belgium to withdraw from the Tobin tax entirely, Van Overtveldt and the N-VA would have to convince the three other parties in the governing coalition. 123 0 obj Belgium, Finland, France, Ireland, Italy, Poland, Switzerland, and the United Kingdom currently levy a type of FTT. The financial industry has consistently opposed the tax — nicknamed the Robin Hood tax or Tobin tax, after the Nobel prize-winning economist James Tobin who championed it — arguing that it would hurt pension funds and other investors and make it more difficult for companies to raise capital. Financial Transaction Tax (FTT) is a generic name for taxes that are levied on transactions such as the sale and purchase of some sort of financial instrument such as stocks, shares or FX transactions. h�b```���Q" ��ea�(h5@���7��A��I8C���y��\�"L�{�?��2�>`���^�T/������ FTTs are levied on the trade in financial instruments such as stocks, bonds, or derivatives. In order for Belgium to withdraw from the Tobin tax entirely, Van Overtveldt and the N-VA would have to convince the three other parties in the governing coalition. Ten EU countries, including France, Germany, Italy, and Spain, are still interested in the common tax and negotiations on the design of that tax are ongoing. Financial transaction tax Belgian Tax on Stock Exchange Transactions: FAQ published. “The government will stick to the principles as agreed in the coalition agreement,” Michel’s spokesperson said. Latest news, analysis and comment on migration in Europe and beyond. *Belgium’s lower tax rate has been increased from 0.09% to 0.12%; see PwC, “Belgium, Individual – Other taxes,” last updated July 1, 2019, http://taxsummaries.pwc.com/ID/Belgium-Individual-Other-taxes. For example, Switzerland levies a 0.15-0.30 percent stamp duty on the transfer of equities and bonds involving a Swiss securities dealer, while France implemented an FTT that taxes equity trades at 0.3 percent and high-frequency-trading at 0.01 percent. For over 80 years, our goal has remained the same: to improve lives through tax policies that lead to greater economic growth and opportunity. The Tax Foundation is the nation’s leading independent tax policy nonprofit. endobj endobj FTTs are levied on the trade in financial instruments such as stocks, bonds, or derivatives. 1325 G St NW %%EOF We work hard to make our analysis as useful as possible. Financial transaction taxes (FTT) levy a tax on each unique instance of the buying and selling of financial assets. The finance minister is eyeing exemptions from the tax to prevent it from discouraging Belgian investors and businesses from taking risks with their capital. The Belgian tax administration has just published a list of Frequently Asked Questions (FAQ) on the webpage dedicated to the Belgian Tax on Stock Exchange Transactions (French / Dutch).
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