Sir, – At a time when the Government is cutting social services, reducing overseas aid and increasing taxes on ordinary citizens, the decision to opt out of plans to introduce a European Financial Transaction Tax (FTT) is most disappointing.
Eleven member states of the EU – including its three largest economies – have signalled their intention to introduce taxes of between 0.01 and 0.1 per cent on the value of financial derivative contracts and any trade in shares or bonds. It is estimated that this tax will raise in the region of €20 billion.
Scare-mongering from financial sector lobbyists predicting a flight of capital should Ireland introduce the tax should be seen as just that. The tax is minute in terms of impact on the financial sector, yet significant in terms of going some way to relieve the public suffering arising from repeated spending cuts and personal tax increases. This tax would allow the financial sector to shoulder a tiny fraction of the burden it has created.
The FTT is a unique opportunity to combat social spending cuts and at the same time finance global priorities such as the fight against hunger and climate change.
There remains the option of opting in to the FTT. We believe it would be in Ireland’s best interests for the Government to do so. – Yours, etc,