The European Union (EU) has proposed a financial transactions tax which would be implemented for the year 2014.The financial transaction tax would be helpful in raising about 57 billion euros which is about $78 billion for a year.The transaction tax would help to set minimum tax rates for the financial transactions throughout the euro zone.
The EU has about 27 nation EU and the details was provided by the European commission who is a Brussels based executive.
According to the statement the tax would asses the trading of stocks and bonds at a rate of 0.1% aid for derivative contacts 0.01% rate. The financial rate is mainly aimed for banks ,investment firms,insurance companies,pension fund ,hedge funds and stockbrokers. The financial tax even includes some of the financial firms according to the statement given by EU and implemented further. The EU stated it has been seeking to insulate households and small business from the tax and banks cannot charge excessive.
The financial tax will however not be implemented immediately and will come into action by 2014 and may under go further changes.The household tax will not allow the banks to charge excessive fees like the 10 euro fees on the stock purchase of 10,000 euro. The fiancee tax would even ensure about the contribution of financial sector during the time of financial consolidation. The EU member stated will even be speaking over the proposal before the commission brings in the plan to the G-20 nation during November. The impact assessment which comes along with the proposal will even be having negative impact of about 0.5% over the Gross domestic product.