Italy to raise €1bn a year with FTT, Assosim
Italy could raise €1bn a year from the introduction of a tax on financial transactions but it will hurt small savers and investors more than hedge funds and banks, according to Italy’s brokers association Assosim.
Speaking to the press, Gianluigi Gugliotta, secretary general of Assosim, said the amount raised by the tax would be modest, and brokers will pass on the tax to their customers, in particular retail investors.
The tax could also be ineffective because speculators who use high-frequency trading could avoid paying it. Gigliotta added that the association will instead propose a tax on orders which are cancelled if they surpass a certain rate.
Italy is among 11 countries which have agreed to go ahead with the plan to introduce the levy proposed by the European Commission proposal and backed by France and Germany.
According to the EU, the tax could raise up to €57bn if applied across all 27 EU countries from 2014.