PARIS Oct 10 France's financial transaction tax
could be extended to intra-day trading after a vote in favour of
it by the finance committee of parliament's lower house on
If the committee's vote is backed by the full assembly and
parliament's upper house, transactions opened and closed on the
same day will be subject to the tax from Sept 1 next year.
Taxing intra-day trading "will contribute to curtailing
destabilising transactions, which accentuate the volatility of
the market," said Socialist lawmaker Christian Eckert.
Proceeds from the financial transaction tax are currently
estimated at 600 million euros, far below the 1.6 billion euros
previously forecast, Eckert wrote in a note explaining the
amendment to the 2014 budget bill.
The final vote on France's 2014 budget is due in December.
The full house of parliament does not always follow the
The launch of financial transaction taxes in France and
Italy has hit demand for stocks, offering a glimpse of the
impact a pan-European levy might have on a recovery in market
When their taxes on trades were launched - August 2012 for
France and March 2013 for Italy - one of the loopholes left in
both countries was intraday trading.
The 0.2 percent French financial transaction tax is
calculated on net positions acquired on the day on securities.
(Reporting by Jean-Baptiste Vey; Writing by Ingrid Melander;
editing by Mark John)