CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Schäuble Eyes EU Tax On Shares

Schäuble Eyes EU Tax On Shares

by Ulrika Lomas,, Brussels

04 April 2012

Given the ongoing staunch opposition from certain countries to the idea of a financial transactions tax in Europe, German Finance Minister Wolfgang Schäbule has put forward an alternative graduated proposal, starting namely with a tax imposed on the stocks and shares of companies listed on the stock exchange.

During the latest meeting of European Union (EU) finance ministers in Copenhagen, Schäuble advocated that a working group be set up in the coming weeks to examine the idea of a tax levied only on shares in the first instance.

According to the German minister, starting with such a tax would enable the twenty-seven EU member states to demonstrate their commitment to ensuring that the financial sector contributes to national economic solidarity, while at the same time allowing more time to gradually enlarge the scope of the levy, once the technical issues have been resolved. Schäuble insisted that he had not given up on a financial transactions tax, however.

By proposing a tax on shares, Schäuble is endeavouring to reach out to the UK to get Britain on board with any plans, to then secure a consensus at European Union level. Since the European Commission unveiled details of its proposal for a financial transactions tax back in September, expected to yield around EUR57bn (USD76bn), there has been little progress, despite the fact that the levy has the firm support of nine EU member states and is championed by France and Germany.

Schäuble’s plans for a tax on shares would be based on the UK model. In the UK, a Stamp Duty Reserve Tax (SDRT) is currently imposed on paperless (electronic) share transactions at a flat rate of 0.5%. In 2006, the UK government generated additional income from the tax of around GBP3.8bn (USD5.9bn).

In Copenhagen, Sweden’s Finance Minister Anders Borg, up to now fiercely opposed to a financial transactions tax, agreed to participate in the working group, underscoring that it is “preferable to abandon the European Commission’s proposal to find a pragmatic solution”.

Dampening hopes for success, however, the Danish Presidency of the EU remains sceptical that an agreement could be reached by June.

France intends to introduce its own tax in August, akin to the stamp duty tax currently imposed by London on stock market transactions.

TAGS: tax | investment | business | European Commission | capital markets | equity investment | tobin tax | United Kingdom | stock exchanges | stamp duty | France | Germany | Sweden | European Union (EU) | Europe

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »