MEPs Push Transactions Tax
Thursday, March 4, 2010
According to the European Development Committee, European member states
must not only deliver on their international aid pledges, but must also introduce
a financial transactions tax and a temporary debt moratorium, in order to help
developing countries to cope with the effects of the global financial and economic
According to a recent European parliamentary statement, European Members of
Parliament (MEPs) are firmly convinced that taxing banking transactions "would
be a fair contribution from the financial sector to global social justice".
At the same time, MEPs are calling for an international levy on financial transactions
to make the tax system more equitable and to generate additional resources for
development funding, including meeting climate change adaptation and mitigation
costs of developing countries.
The statement also highlights a warning from MEPs that "the negative impact
of tax havens may be an insurmountable hindrance to economic development in
poor countries," given that it undermines national tax systems and increases
the cost of taxation.
Consequently, MEPs have emphasized the need for "a new binding, global
financial agreement which forces transnational corporations, including their
various subsidiaries, to automatically disclose the profits made and the taxes
paid on a country-by-country basis, so as to ensure transparency about sales,
profits and taxes."