Financial Transaction Tax (FTT)

The European Union (EU) financial transaction tax (FTT) was a proposal made by the European Commission (EC) to introduce FTT within some of the member states of the EU. Initially by 1 January 2014, later postponed to 1 January 2016, then to the middle of 2016 and then to September 2016. In October, the EC was instructed to draft the tax by the end of 2016. In October 2012, after discussions had failed to establish unanimous support for an EU-wide FTT, the EC proposed that the use of enhanced co-operation should be permitted to implement the tax in the states which wished to participate.

This framework proposal, supported by 11 EU member states, was approved in the European Parliament (EP) in December 2012, and by the Council of the EU in January 2013. Other than specific versions of an FTT that have been introduced is certain counties, there has been no agreement for any widespread implementation of an FTT across Europe. Discussion continues at a political level on the implementation of the FTT.