Brussels is consulting on Financial Services Sector Taxation

Brussels is consulting on Financial Services Sector Taxation

The European Commission has informed about  the launch of a public consultation to receive feedback on the prospect of taxing the financial sector, especially through the application of FAT financial activities taxes) and FTT (financial transactions taxes).

Calling for answer from concerned stakeholders, the Commission said that thus far countries had encountered problems, due to public criticism of a possible under-taxation of the sector, fears about the promotion of greater risk-taking, and concerns that unilateral action could create incentives for tax-driven relocation either within the European Union or outside the European Union, distorting competition; and because of issues with double taxation.

The Commission said that stakeholders’ answer will be useful (i) to test its assumptions and collect related evidence as regards the problems of taxing the sector; (ii) to assess the impacts of the set of policy options; and, (iii) to consult on more detailed aspects of the feasibility and design of the policy options.