EU Sees $23.5 Billion in Revenue From Financial-Transaction Tax
- Derivatives account for more than half of the projected total
- Hard Brexit could create a ‘more tricky enforcement issue’
Financial traders monitor data inside Frankfurt Stock Exchange in Frankfurt.
Photographer: Jasper Juinen/Bloomberg
A proposed tax on financial transactions in 10 European Union countries could generate about 19.6 billion euros ($23.5 billion) of annual revenue, though Brexit could make collection more difficult, according to a new estimate.
Derivatives account for more than half of the projected revenue, with 6.2 billion euros coming from exchange-traded contracts and 6.1 billion euros from over-the-counter trades, according to documents prepared for a meeting this week of officials from the 10 countries. Those figures are based on a tax rate of 0.01 percent for derivatives. At half that rate, total revenue would dip to 16.6 billion euros, according to the documents seen by Bloomberg.