Where we are at

1
The Financial Transaction Tax Feasibility,
Desirability, Political Will
David Hillman Director


Leading Group 12th Plenary Conference, Abuja
17th January 2014
2
What is the FTT?

• Taxing financial transactions
• such as stocks, bonds, foreign exchange,
• derivatives ie futures, forwards, swaps, options
  
• European FTT legislation - rates 0.01 0.1
• Revenue 34 billion euro per annum
• Spending 50 domestic 50 international
• Development/health (25) climate change (25)

3
Feasibility

• Heritage and provenance
• More than 40 countries Argentina, Australia,
  Austria, Belgium, Brazil, Chile, China, Colombia,
  Denmark, Ecuador, Finland, France, Germany, Hong
  Kong, India, Indonesia, Italy, Japan, Malaysia,
  Morocco, Netherlands, Pakistan, Peru,
  Philippines, Portugal, Russia, Singapore, South
  Korea, Switzerland, Taiwan, UK, US
• FTTs only ever implemented unilaterally
• re-location of trading dealt with by good
  design

4
Desirability

• Stability an anti-churning tax
• Revenue
• Leading Group Innovative Financing for
  Development Solidarity Levies
• Aviation taxes ? UNITAID pilot project

5
Political Will

• Policy developed over years financial crisis gt
  policy space opened
• History 2011 - France ? Germany
• EU 27-country legislation ? Enhanced Cooperation
  Procedure side-stepping of blockers
• Current situation negotiating text ? May 6th
• Allocation given where initiative started ie
  here importance of as a high a proportion as
  possible going to development

6
Prospects in Africa

• The opening of policy space the FTT is no
  longer off limits
• African countries with largest financial sectors
  can generate the most revenue
• Revenue can be spent domestically on Public Goods
  such as health and education
• It is time the financial sector carried more of
  the burden