Tax on share purchases is to come

The year-long project of a financial transaction tax could enter its final phase. Finance Minister Scholz has presented a draft that is to apply in ten EU countries.

Share price boards on the Euronext stock exchange in Paris

BUnfinance Minister Olaf Scholz (SPD) has presented his European counterparts with a final draft law on the financial transaction tax, according to a media report. As the “Süddeutsche Zeitung” (Tuesday edition) reports, the draft law initially provides for a tax on share purchases in ten EU countries. According to the newspaper, Scholz has now asked the European finance ministers for their final approval.

“For the first time since 2011 we are so far that we can reach an agreement,” wrote Scholz to his EU colleagues, according to the “Süddeutscher Zeitung”. The European finance ministers had previously asked Scholz to submit a draft law.

According to the “Süddeutscher Zeitung”, the ten countries in which the tax is initially to be introduced are, in addition to Germany, Belgium, Greece, Spain, France, Italy, Austria, Portugal, Slovenia and Slovakia. A financial transaction tax has been negotiated in the EU for years.

In the direction of the stock exchange tax, the tax on share purchases envisaged by the Federal Minister of Finance is only a first step, writes the “Süddeutsche Zeitung”. Accordingly, the draft law provides that buyers of shares in large companies will have to pay a tax of 0.2 percent of the business value in the future. However, this only applies to shares in companies that are valued at more than one billion euros. In Germany there are 145 companies, in the ten countries a total of 500 companies.