> Home > News > News > Financial Transaction Tax a deliberate assault on the City
>  News

Financial Transaction Tax a deliberate assault on the City
Date 14/02/2013 20:00  Author webmaster  Hits 2557  Language Global
The Commission proposal is clearly targeted to tax UK financial services even though the UK has opted out of the FTT zone. This taxation is just the beginning because the tax rate will be ratcheted up over the coming years to squeeze more money from the financial services industry, says UKIP MEP Godfrey Bloom.

The European Commission today set out the details of the Financial Transaction Tax (FTT), originally proposed by it in September 2011 and agreed by 11 member states under "enhanced cooperation."

According to the Commission, the tax is not limited to within the FTT-zone, but may apply to financial institutions in member states that are outside the zone, such as the UK.



From the Commission's press release:

"As in the original proposal... the "residence principle" will apply. This means that the tax will be due if any party to the transaction is established in a participating Member State, regardless of where the transaction takes place."


The Commission adds:

"As a further safeguard against avoidance of the tax, today's proposal also adds the "issuance principle". This means that financial instruments issued in the 11 Member States will be taxed when traded, even if those trading them are not established within the FTT-zone."

Responding to the proposal,
UKIP Economics spokesman and former financial advisor, Godfrey Bloom MEP said:

"This is a deliberate assault on the City of London."

"We now have it in black and white that the European Commission wants to tax financial institutions in the UK even though they are not within the FTT zone.

"The Commission proposal is clearly targeted to tax financial services in the City even though the UK government does not want to participate. 

"The UK government will have no say on this tax system but businesses within its borders will be burdened by it.

"The Commission obviously ignores the American cry of 'No taxation without representation'. They have ignored the lessons of history and will in time face rebellion.

"This tax will help push financial services outside the EU altogether, to Switzerland and other growing financial centres around the globe.

"Mark my words, this taxation is just the beginning because the FTT rate will be ratcheted up over the coming years to squeeze more money from the Financial Services industry."
www.ukip.org
...................................................