The UK Peers have attacked plans by the European Commission for a Europe-wide financial transaction tax, warning that if introduced, the UK could account for 71% of the revenue it would raise. It is unclear, they said, why the financial sector should be targeted, and the FTT proposal’s reversal of the trend towards horizontal measures is rendering it inappropriate as an EU revenue source.
The Committee on Financial and Economic Affairs at the House of Lords also noted the UK government’s strong objection to any new EU taxes to fund the EU budget, and its case for tax sovereignty.
