The ECOFIN Council took stock of the work done on the proposal for a Directive on the EU-wide financial transaction tax. The ministers identified the outstanding issues and discussed the next steps.
The Danish Presidency concluded that the first technical reading of the proposal had been completed. In its report to the ministers, the Presidency noted that a whole range of sensitive issues remains to be addressed. Among those issues are specific questions regarding:
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the tax base (coverage of currency derivatives and government bonds and its impact on the costs of hedging and government borrowing; coverage of pension schemes and its impact on business models used in various member states, etc.);
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structure of the rates and persons liable to tax;
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more general questions regarding the tax base.
"It was a very fruitful and very constructive discussion. I guess that the different views on the proposal itself are well known, but there was an atmosphere of compromise and trying to find ways", said Danish Minister for Economic Affairs and the Interior, Margrethe Vestager, who chaired the meeting.
The Council will continue its technical analysis in order to look at all the aspects of the proposal and their implications in practice.
Additional meetings will be organised by the Presidency, which intends to start exploring possible compromise proposals to prepare for a discussion by the ministers, planned to be held before the end of June. The Member States will continue to look into ways to advance the work on this politically and economically important issue.
EU decision-making on tax issues requires unanimity voting in the Council, after consulting the European Parliament.
Presidency report
© ECFIN
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