Lords EU Committee to quiz European Commission and CBI on potential impact of EU Financial Transaction Tax

18 March 2013

The House of Lords EU Sub-Committee on Economic and Financial Affairs will tomorrow take evidence from Manfred Bergmann, European Commission Director of Indirect Taxation and Tax Administration on the EU’s proposed Financial Transaction Tax (FTT). Also giving evidence to the Committee in the same session will be Richard Woolhouse, Head of Tax and Fiscal Policy at the CBI and John Vella, Senior Research Fellow at the Oxford University’s Centre for Business Taxation.

The Committee will question the witnesses on the European Commission’s proposals to introduce an FTT, which would place a levy of 0.1% for shares and bonds and 0.01% for derivatives across 11 EU Member States including France and Germany. However the UK has made clear that it will not take part.

The session will explore the implications of this proposal for both participating and non-participating countries, as well as for the EU as a whole. In particular, areas covered will include whether the proposals risk undermining the single market, what impact the proposed FTT will have on economic growth, how any revenue raised by the FTT will be used and what impact the FTT will have on the UK which has by far the largest financial services industry in the EU but has ruled out signing up to a European FTT.

The evidence session will start at 10:45 on Tuesday 19 March in Committee Room 3 of the House of Lords.