NEW DELHI, JULY 07, 2010:
Many European
countries have begun talking about a new tax called Financial Transaction tax
(FTT). It is different from 'Tobin Tax' which apply only to foreign currency
market. Since G-20 has recently rejected it, Germany and France ,in dire need of
revenue, have been deliberating over the FTT on the banking
sector.
The
German Finance Minister reportedly told the Bundestag, the lower house of
Parliament, that if the FTT could not be implemented at the level of entire
Europe,they would explore the possibility of levying a euro zone transaction
tax.
Going
by the projections of the Austrian WIFO economic research institute, a global
financial transaction tax of 0.05% could yield revenue of about 1% of world GDP
per year. An estimate of the revenue potential for Germany stands at about 10 to
20 billion EUR per year.
|
