09 November 2011

IMA: FTT is a tax on UK savers

In its submission to the House of Lords EU Committee's call for evidence on the Financial Transactions Tax (FTT), the IMA said that the FTT is a tax on UK savers, who will pay a disproportionate amount of the tax levied across Europe.

Commenting, Julie Patterson, Director at the IMA, said: “The FTT is a tax on UK savers. The tax will hit the UK the hardest, simply because it is Europe’s pre-eminent global financial centre. Not only will the negative impact on UK GDP be higher than elsewhere in Europe, but most importantly, UK savers will take the hit on their pensions and other savings.”

“Rather than target the financial institutions that contributed to the crisis, the FTT will fall on ordinary savers who, as taxpayers, citizens and consumers, are already bearing the brunt of the cost. Charities’ and pension funds’ investments will also suffer, as they will be hit at least twice by this tax. As proposed, the FTT will not deliver on its stated objectives, but instead levy a tax on saving. This would be a perverse outcome, with absolutely no upside for regulators, governments or ordinary savers.”

Press release

© IMA