EU Expects to Earn $23.5bn From Financial Transactions Tax

A proposed tax on financial transactions in 10 European Union countries could generate about 19.6 billion euros ($23.5 billion) of annual revenue, though Brexit could make collection more difficult, according to a new estimate.Derivatives account for more than half of the projected revenue, with 6.2 billion euros coming from exchange-traded contracts and 6.1 billion euros from over-the-counter trades, according to documents prepared for a meeting this week of officials from the 10 countries. Those figures are based on a tax rate of 0.01 percent for derivatives. At half that rate, total revenue would dip to 16.6 billion euros, according to the documents seen by Bloomberg.Those totals assume that the tax could be collected abroad, including in the U.K. after Brexit, on transactions involving a counterparty from one of the participating countries. Talks on the financial-transaction tax were put on hold last September to allow experts to work through the possible consequences of the withdrawal of Britain, home to the EU’s main financial hub, from the bloc.

Source: EU Sees $23.5 Billion in Revenue From Financial-Transaction Tax – Bloomberg

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