According to Chancellor George Osborne, the Financial Transactions Tax, or FTT, is not a tax against bankers, but it will affect pensions, business, loans and almost everything in the United Kingdom’s eager economic development. Osborne said the FTT has vague details, which may overturn many different UK industries.
Sweden had also voiced out its concerns along with the UK because it is unclear which derivatives will be affected by the tax. According to Sweden, the FTT did not disclose where the tax would be paid. The vagueness of the FTT even stretches to allow a non-FTT state to collect revenue on behalf of a participating FTT.
The UK government’s legal challenge was rejected by the EU courts, which brought more fury from Osborne. The Chancellor said that there was a lack of transparency in the development of the new levy. The FTT clearly failed to inform other member states about the proposal.
Osborne went on to say that they were only given “five minutes” to read the proposal.
EU’s Taxation Commissioner Algirdas Semeta said that the refusal of UK’s legal challenge by the European courts will help pave the way for the FTT’s adoption in the EU and he added the proposal does not violate territory rules.
The Legal File 