THE EU's biggest economies would generate between €30bn and €35bn through their upcoming duty on financial transactions, according to a European Commission proposal which will see trades executed in London, New York and Hong Kong fall within its scope.
Under the revised plan, France, Germany, Italy and Spain along with Austria, Belgium, Greece, Portugal, Slovakia and Slovenia will enact Europe's first levy on bonds, equity and derivative transactions.
The EU's initial drive to introduce the tax split member states, resulting in a group to form a smaller transaction tax bloc covering approximately two-thirds of the EU's economic output, but excluding the City of London.
The new proposals, which will be published in the near future, will form the basis for talks between the states, without the need for the go-ahead from opponents such as Sweden and the UK, reports the Financial Times.
The plan will see a 0.1% tax imposed on the value of stocks or bonds and 0.01% on derivative contracts.
The draft, drawn up by EU tax commissioner Algirdas Šemeta (pictured), has a broader scope than anticipated, with anti-avoidance measures built in in order to prevent financial business moving operations outside the levy's jurisdiction.
As a result, the commission recommends the tax should also apply to transactions based on where the financial product was issued, even if the parties trading it are in Asia, the US or Britain.
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