Lords to press EU Commissioner on Financial Transaction Tax proposal

16 February 2012

The European Commissioner for Taxation, Commissioner Algirdas Šemeta, will face questions about proposals for a Financial Transactions Tax (FTT) from the House of Lords EU Economic and Financial Affairs and International Trade Sub-Committee on Thursday 16 February.

The Committee is conducting an inquiry into the implications of an FTT, looking at the potential opportunities and risks and how such a tax might affect the City of London and more broadly the UK economy. It is expected to ask Commissioner Semeta about the rationale behind the introduction and architecture of the proposed FTT, with questions including: 

  • Is it right to propose a tax that is likely, by the Commission’s own admission, to lead to a significant relocation of financial activity away from the EU?
  • Has the Commission considered the practical ‘knock on’ effect of an FTT for consumers and savers?
  • Is the tax consistent with aims for economic growth and job creation?
  • Would the tax provide a sustainable revenue or would it in fact lead to a reduction in GDP?

The evidence session will take place at 10.05am Thursday 16 February in Committee Room 3 of the House of Lords.

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