Wednesday, 16 April 2014

Czech PM: Finance transaction tax will harm EU economy

4 April 2013

Prague, April 3 (CTK) - The planned financial transaction tax, which the European Commission wants to introduced in some member states of the European Union (EU), will harm the EU economy and will make it less competitive in the area of financial services, Czech Prime Minister Petr Necas said after a cabinet meeting Wednesday.

Necas said he could not rule out that the Czech Republic would go to the European Court of Justice in this matter.

"It is important for us to prevent the introduction of this tax from harming the single market of financial services in the EU. In some cases it may even harm those EU Member States that will not join (the tax)," Necas said.

If a Czech bank traded with bonds of a country in which the tax was introduced, the transaction would be subject to the financial transaction tax and the Czech tax administrator would be obliged to send the tax to the given country.

"It is a hardly acceptable thing for us. We are very cautious in this matter. Our position does not rule out some radical steps, such as steps leading to the European Court of Justice," Necas said.

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