Malta is still opposing the European Commission’s proposal in relation to the introduction of a tax on financial transactions (0.1 per cent on trading in shares and bonds, and 0.01 per cent on derivatives transactions). This position has been restated by Finance Minister Tonio Fenech at a meeting of EU Finance Ministers in March 2012.
Malta has reiterated its position against the introduction of a financial transactions tax that is being proposed by the European Commission to generate around €57 billion in new taxation revenue, annually.
In a survey carried out in June this year, it has resulted that Malta is the only EU member in which the number of people opposing the introduction of an EU-wide financial transaction tax exceeds those in favour of it, a survey suggests.
Commissioned by the European Parliament, the survey shows that just 30% of Maltese respondents favoured the introduction of the tax, while 47% declared themselves opposed. Malta believes that if this proposal goes through, it will harm competitiveness and jobs. Moreover, Malta believes that the proposed tax is inefficient, given that the efforts to collect it are not proportionate to the benefits reaped, especially when small member states are taken into account.
So far, the proposed regime is supported by Germany, France, Italy and other significant economies, while it is opposed by the UK, Sweden and Malta who think that there will be an exodus of capital to outside the EU if the proposal goes through. With a view to convincing all Member States of the desirability of the introduction of such a tax, the Commission will present a practical analysis on the impact of the introduction of this tax. For the tax to be introduced, unanimous consent among Member States has to be achieved. It is estimated that the tax could raise €57 billion per year.
