Italy to exclude exporters from Tobin tax on derivatives -report
MILAN Dec 15 (Reuters) - Italian exporters that use derivatives to protect themselves from exchange rate swings will be exempt from a new levy on financial transactions, daily paper Il Sole 24 Ore reported on Saturday.
Rome will apply a domestic version of the Tobin Tax - a levy on share trading - next year, anticipating a euro zone framework for taxing financial transactions that is currently under discussion for adoption by 11 countries in the currency bloc.
Under an amendment included in the 2013 budget law, the Italian government proposed on Thursday that share transactions be taxed at 0.12 percent of their value from March 2013 and at 0.1 percent from 2014.
Critics say the levy could harm equity trading in Italy to the benefit of rival financial centres such as London.
Citing the text of the amendment that a parliamentary committee approved on Friday, the newspaper said transactions aimed at hedging commercial contracts against financial risks would be excluded from the tax.
Following the introduction of the share transaction tax in March, trading in derivatives will be taxed from July, depending on the type and nominal value of the contract.
The amendment did not set a tax rate for this type of trade but said the levy would not exceed 100 euros per transaction for contracts such as futures, warrants, certificates, covered warrants and options. A cap of 200 euros per transaction will apply to swaps.
The revenues Italy will effectively reap from this levy will be only one-fifth of a target of 1 billion euros set by the government, according to the paper's calculations. (Reporting by Francesca Landini; Editing by Hugh Lawson)
- U.S. air strikes on Syria would face formidable obstacles
- Samsung unveils smartwatch that can make calls
- Russian-backed separatists enter southeast Ukraine town
- FBI, Secret Service investigate reports of cyber attacks on U.S. banks
- Breakthrough hopes dented as Ukraine accuses Russia of new incursion |