Ivan Camilleri, Brussels
Brussels announces plans to tax financial operators
Malta in favour of new taxes
The European Commission yesterday unveiled its anticipated proposals to tax financial services.
Financial institutions, particularly banks, will start paying a financial activities tax (FAT) to help governments raise more revenue and boost their economy. The Commission argued that since the sector, especially banks, were the primary factor in causing the financial collapse two years ago, it was now time they gave their fair share through profits and pay packages.
The specifics still have to be established, however, Taxation Commissioner Algirdas Semeta indicated a preference for a five per cent levy, which could yield an added €25 billion to the EU economy.
The Commission also called for the introduction of a financial transaction tax (FTT), taxing all financial transactions such as the purchase of stocks, bonds and foreign currency made within the EU. However, Brussels wants this to be introduced only after a global agreement is reached to avoid firms moving out of the EU.
The proposal will now be submitted on behalf of the EU to the G20 meeting in Seoul, Korea in November to try to forge a deal with the rest of the world’s leading economies.
Mr Semeta said there were good reasons for taxing the financial sector and feasible ways to do so. “I believe the ideas the Commission has put forward today are the right ones to ensure the financial sector makes a fair contribution to the most pressing EU and global challenges.”
Although still early, government sources said Malta would be in favour of such new taxes “as long as they are fair and on a level playing field among all the EU member states”.
Malta also agrees with the transaction tax should there be a global agreement.
The Commission said the financial sector was a major cause of the financial crisis and received substantial government support over the past few years. It should, therefore, properly contribute to the cost of rebuilding Europe’s economies and bolstering public finances.
Brussels said that a corrective bank tax could complement the essential regulatory measures designed to enhance the efficiency of financial markets and to reduce their volatility. “Given that the financial sector is exempt from value added tax in the EU, such tax would ensure this sector is not under-taxed compared to others,” the Commission said.
Although, in general, EU governments are expected to support these initiatives, they are still divided on what the money raised by any bank tax should be used for. Germany has said the money should go into a special fund that would finance future bailouts while France and the UK want to use the money to plug holes in their budgets.
The proposals will now be presented to EU Finance Ministers next week prior to a proper decision at an EU summit planned for the end of this month.
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R.Camilleri
Oct 9th 2010, 08:38
In the case of Malta it would be wiser that those having large salaries, pay their dues, for example Health proffessionals (Doctors / Consultants) and others who were exempted from giving a Fiscal Receipt. The Government knows very well whom they are, because if the Banks are charged more on their profits they for sure pass it over to their clients. What I know is that only the workers pay their due as it is directly cut from their salaries. Justice Please !!!!!
c. camilleri
Oct 8th 2010, 16:17
Before venturing to tax the Banks we expect those fat casts at Brussels to have a reduction from their hefty salaries and allowances.
Of course the Banks will quite naturally transfer the burden on their customers. This is all that European countries are getting from the EU, taxes and more taxes for the people and improving benefits for those those at Brussels
l fenech
Oct 8th 2010, 15:54
U l-EU tkompli tahleb. U il-banek minn fejn ser igibhuhom mhux min fuq ic-cittadin. Din katina.
DVella
Oct 8th 2010, 14:26
Great! Mister Joe Citizen foots the bill as usual! Why not tax all salaries in excess of 100,000 Euro p.a and ALL bonuses paid to Bankers and Managers and everybody in the financial sector . . . at 80%? !
Whilst you're at it, why not impose a suitable tax on EU Commissioners with their fancy salaries . . . and an even heavier one on the shameful 'allowance' they receive after their term has ended, which allowance incidentally, is approximately ten times the salary of 90% of all Europeans (!)
Wallace Cassar
Oct 8th 2010, 12:13
The EU is nothing else than taxes, taxes and more taxes to fund the luxury life of its unelected elites and their faithful servants
a attard
Oct 8th 2010, 11:27
Above that, banks are all ready charged 35 % upon all their profits.
Then the banks distribute some of their earnings to the share holders in the form of dividends, where these dividends are again directly taxed another 35%.
One can see that already banks are overtaxed and nearly 60% of all their profits go to government coffins.
So what is the reason for taxing them further??
C Borg
Oct 8th 2010, 10:09
Who are they kidding, taxing the banks an extra 5%. Who do they think will end up paying this, the banks? Pull the other one. The banks will simply increase fees to cover this extra 5%. It is us, the consumer, the people, the donkeys, that will pay for this. Plus we now we will have to pay a tax when exchanging money to travel abroad. Unbelievable how Orwellian our lives are turning out.
They take us for a ride and the funny thing is, they spin it so much that they make you think that we are the rider and we smile and cheer! But the sad fact is that we are the donkey.
I love people and have tried to suppress my feelings to these orwellian moves being made by the Global Players, but i must say, I despise the people that run this planet but the people i hate the most is their government cronies, as they live amongs us and still they cheat us.