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Thursday 26th April 2012 | 14:55
The European Union is pushing ahead with a Financial Transaction Tax (FTT). Plans for the tax which will cost jobs in London were approved in the European Parliament's Economic Committee this week.
The tax is given its go-ahead by a report by Anni Podimata MEP which approves a Commission document which provides for the introduction of the Tax.
It is virtually unknown for a report to be stopped in Plenary once it is approved in Committee.
Commenting, UKIP's Godfrey Bloom MEP said:
"The blind drones of the European Parliament from the hard left and the soggy centre cannot help themselves. They see something that can through its efforts and exertions help to save us from their own grave errors and want to destroy it."
To impose their FTT will have a disproportionate effect on the UK economy. They want to raise their budget, they persuade our government to bung them billions in bailouts and they want to strangle our most important income earner."
It is also clear that the EU wants this to go ahead in all 27 member states and the legislation is designed with that in mind. It raises" the question: will Cameron let it through?
The bankers can look after themselves, but the real impact of this tax will be felt by the taxi drivers, shop workers secretaries and cleaners who will allso see their incomes and jobs vanish".
The FTT is a menace and must be stopped"
The proposed tax will,
Cover transactions in all types of securities (shares, equity, bonds, derivatives) and all trades in regulated or non-regulated platforms i.e. every possible transaction
But does NOT apply to national central banks, the ECB or bodies set up by the EU - so the EU hits everybody but itself and state central banks
Is charged on the counterparty's residence so institutions within the EU are penalised whereas non-EU institutions are let off to encourage them to use EU instruments
Will be at the rate of 0.1% on shares and bonds and 0.01% for derivatives
Unanimity is declared to be 'the best way to implement the proposal' though the enhanced cooperation rules could also be used.