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EU executive outlines 25 bln euro transaction tax on banks
Date 07/10/2010 16:32  Author webmaster  Hits 1314  Language Global
07 OCT 2010

(Reuters) - A new European Union tax on bank profits and remuneration could raise as much as 25 billion euros (15.7 billion pounds) for cash-strapped governments to repair their economies, the bloc's executive body said on Thursday.

The European Commission, with political backing from the bloc's leaders, outlined its plans for a Financial Activities Tax (FAT), saying banks were "under taxed" and should contribute to rebuilding economies they damaged.

"I believe that the ideas that the Commission has put forward today are the right ones to ensure that the financial sector makes a fair contribution to the most pressing EU and global challenges," EU Tax Commissioner, Algirdas Semeta said in a statement.

An activities tax was the best solution for making the financial sector more stable, to raise more revenue and tax a sector, which is exempt from value added tax, more fairly.

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