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French trading tax could be extended to intra-day trading
October 10, 2013 / 5:10 PM / 4 years ago

French trading tax could be extended to intra-day trading

PARIS, Oct 10 (Reuters) - 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 Thursday.

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 committee’s votes.

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 volumes.

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)

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