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.
- 2 18th century sex toy found in 'toilet of sword fighting school' in Poland
- 3 US? China? India? The 10 biggest economies in 2030 will be...
- 4 'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
General Election 2015: David Cameron catching up in polls – but he badly needs a clear lead
Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
South Africa xenophobic attacks: Shops looted and violence on streets of Johannesburg as foreigners are forced to hide in police stations
18th century sex toy found in 'toilet of sword fighting school' in Poland
'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
The only black face in the Ukip manifesto is on the page about overseas aid
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...