The European Fund and Asset Management Association (EFAMA) says the economic cost of a financial transactions tax would, in practice, be borne by end consumers throughout Europe including individual savers and those participating in pension plans.
According to EFAMA, the impact of the proposed financial transaction tax on the long term savings market would be significant, not only because the proposed headline rates are relatively high, but also because the proposal, as currently drafted, would give rise to multiple taxation. In the case of investment funds, for example, the charge to financial transaction tax would apply at fund level, through transactions within portfolios, and on investors when buying funds. In addition, the use of financial intermediaries to distribute funds means that the purchase of shares or units by a...
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