MEPs oppose Eurobond tax exemption
Wednesday 27 January 1999
The Economic and Monetary Affairs Committee rejected UK moves to exempt the lucrative Eurobond industry from the tax, a decision described by City trade bodies as "deeply disappointing".
According to research commissioned by the Corporation of London, the extension of the withholding tax to Eurobonds could drive the entire industry out of the European Union, with the consequent loss of thousands of City jobs.
Commenting on yesterday's vote, John Langton, chief executive of the City trade body ISMA, said the exemption of Eurobonds was crucial for the preservation of the EU's international securities market.
He said: "I am disappointed at the result, but I cannot say I am surprised. It escapes me why politicians on the Continent are prepared to allow Europe's financial services industry to be damaged in this way."
The Commission's withholding tax proposals - which are intended to crack down on unfair tax competition within the EU - will now be considered by the full European parliament.
If, as expected, the parliament follows the recommendations of its Economic Affairs Committee and extends the tax to Eurobonds, the UK Government could use its veto to prevent the proposals becoming law.
A Treasury spokeswoman said: "We do not accept the current drafting of the Commission directive. We have said that we will not agree to action which would harm jobs and investment in Britain."
However, yesterday's vote did give the City some consolation. The Economic Affairs Committee has recommended the tax be set at 15 per cent rather than the 20 per cent initially proposed by the Commission.
- 1 Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
- 2 Venezuela Expo Tattoo 2015: Extreme body art from 'Vampire Woman' to 109mm earlobes
- 4 Dad attempts revenge on teenage daughter, plan backfires spectacularly
- 5 Ball pool for adults opens in London
Isis 'throw man off a building for homosexual affair' and beat him to death when he survives
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Boris Johnson claims porn-obsessed Islamic jihadists are 'literally w*****s'
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Ball pool for adults opens in London
9 reasons Greece's experiment with the radical left is doomed to failure
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
King Abdullah dead: We can't afford not to hold Saudi Arabia's royals to account
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...