Dutch agree to EU Robin Hood tax

31 October 2012

The Netherlands said it will adopt the proposed EU Robin Hood tax — the financial transaction tax — provided it is not imposed on pension funds. This is a blow to countries that are firmly against the EU adopting such a tax, including Ireland and Britain. 11 countries have already agreed to it.

The Dutch had been firmly against adopting the tax but the Labour party in the new coalition said it should be part of their programme for government, agreed this week.

As well as making it a condition that pension funds would be excluded from the tax, the Netherlands say the revenues must return to the Member State. The European Commission suggested two-thirds of the proceeds go to offset Member States' contributions to the EU.

Ireland and Britain apply a stamp duty that is paid by the final purchaser or seller. In Britain, banks, investment firms and investment banks do not pay it and, as a result, about 70 per cent of the total UK stock market volume is exempt, according to a report by Oxera. All currency and derivative transactions are also exempt.

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