Domenica, 23 Settembre 2018

Sovereign and pension funds exempt from Italy's Tobin tax


Rome, August 26 - Financial transactions involving
sovereign funds, such as treasury bonds, won't be subject to the
new Financial Transaction Tax (FTT) - the so-called Tobin tax -
which goes into effect on October 16, the Italian economy
ministry announced on Monday.
''Entities and organizations invested in by pension funds''
will also be exempt from tariffs on equity and derivatives
transactions, but ethical or socially responsible funds will
not, the ministry clarified.
Companies that buy shares in their controlled entities, or
buy back their own stock to eliminate shares, also won't pay the
new tax destined to hit both counterparties in most equities
The FTT is nicknamed after Nobel Laureate economist James
Tobin who in 1972 proposed a tax on all spot conversions on
currencies to prevent attacks inflicted by short-term
speculation, but has come to refer to taxes imposed also on
other financial transactions, like equities or securities,
intended to dampen speculative forays or raise more money for
governments from the financial sector.
In September 2011, the European Commission issued a set of
guidelines to help member states harmonize their FTT measures,
saying EU countries increasingly sought FTTs so that the
financial sector ''makes a fair and substantial contribution to
public finances'' and ''pay(s) back at least part of what the
European tax payers have pre-financed in the context of the bank
rescue operations'' caused by the financial crisis since 2008.
Several European countries have already instituted FTTs,
including Belgium, France, Poland, Finland, Sweden and Greece.

Photo: Economy Minister Fabrizio Saccomanni

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