What Is a Financial Transaction Tax?

Financial transaction tax refers to a tax imposed by Brazil on financial transactions. The taxation object is financial (including insurance contract) transactions. The trader is the taxpayer, and the taxpayer's contract amount is used as the basis for tax calculation. The purpose of the tax is to reduce volatility in financial markets. ^[1]

Tax on financial transactions

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Financial transaction tax refers to a tax imposed by Brazil on financial transactions. The taxation object is financial (including insurance contract) transactions. The trader is the taxpayer, and the taxpayer's contract amount is used as the basis for tax calculation. The purpose of the tax is to reduce volatility in financial markets. ^[1]

financial

On August 1, 2012, France was the first in the world to levy a financial transaction tax, levying a 0.2% transaction tax on securities transactions in any company listed in France with a market value of more than 1 billion euros.

On October 23, 2012, European Commission President Barroso announced the approval of levying financial transaction tax applications from 10 Eurozone countries, including Germany and France. This means that despite the UK and Sweden's objections, the EU can still launch "strengthening cooperation "Procedure drives tax planning.

In March 2013, Italy also began to levy taxes. A 0.12% transaction tax is levied on stock and bond transactions on exchanges or other multilateral quotation systems, and a 0.22% transaction tax is levied on OTC transactions.

On February 14, 2013, the European Commission formally adopted and launched the Financial Transaction Tax (FTT), which will levy taxes on the purchase and sale of all financial instruments in 11 countries from January 2014. ^[3]

Why not levy a financial transaction tax ^[4]