EU: Eurozone Financial Transaction Tax

Lord Barnett Excerpts

Tuesday 5th March 2013 Lords Chamber

[Lord Newby]

My Lords, the estimate that the Commission has produced is that the tax would raise €35 billion. It would not be raised from all financial institutions across the EU; it would be raised only from those established in countries which levy the tax. A tax such as this, which covers things like shares, trickles down through multifarious channels but, obviously, at the end of the day, a very large number of people end up paying a small amount towards it.

[Lord Barnett]

If the treaty eventually proposes a tax that would affect this country, will the Minister make it clear that we would veto it?

[Lord Newby]

My Lords, the noble Lord needs to understand the difference between a tax which we would levy, where there is a veto, and a tax which we would help collect, of which there are a number of existing examples in EU law and this would be another.