Dáil Éireann Debate, Tuesday - 21 February 2012
201 Deputy Micheál Martin asked the Minister for Finance his response to the recent announcement by President Sarkozy to introduce a transaction tax from 1 August; if he has discussed this issue directly with him, or at the EU Council; and if he will make a statement on the matter. [6384/12]
View answerThe French Government is proposing to introduce a tax on financial transactions from August this year, although at first glance the French proposal does not seem to be as wide as the EU Commission's proposed Financial Transactions Tax (FTT). It is more akin to our existing Stamp Duty on share transactions. The French proposal does not cover trading in sovereign and private sector bonds and derivatives, which would be taxable under the Commission's FTT. I have no plans to introduce such a tax on a unilateral basis. I have stated clearly in the past my view that any tax on financial transactions would be best applied on a wide international basis to include the major financial centres. If such a tax cannot be introduced on a global basis, I think it would be better if it were introduced on an EU-wide basis, as this would prevent any distortion of activity within the Union. Our major concern is that, if an FTT is introduced, it could affect the financial services industry, especially in the IFSC, and lead to some activities moving abroad. If, as some countries have proposed, the tax was to be brought in under enhanced co-operation arrangements, we fear we could lose business to London, since the UK is strongly opposed to this initiative. In the past, certain financial activities moved to London when other countries enacted similar taxes.
The current draft proposal in relation to a FTT is still being discussed at EU Council Working Party level and will be considered again by the Council of Ministers later this year. I have made clear our views, as has the Taoiseach, in discussion with our European colleagues.
