The Tobin tax disappoints expectations. Last year, the levy on financial transactions generated revenue of more than 300 million euros, while estimates for 2014 speak of a total amount between 350 and 400 million. The numbers were released today by Vieri Ceriani, consultant to the Minister of Economy and former Undersecretary of the Treasury with the Monti government, regarding the tax that came into effect in March 2013.
“The revenue for the first ten months of 2013 – said Ceriani – is over 300 million. The estimate for 2014, taking into account the lowering of the rate on shares and the fact that derivatives have only been subject to tax since September, is 350-400 million”.
The revenue, however, "is much lower than forecasts", underlined Paolo Sestito, head of the Bank of Italy's economic structure service. The annual budget foreseen by the Ministry of the Economy, according to what emerged today during a conference, amounts to around 500 million.
“Evidence says that taxation on transactions is not the solution to the two issues that were at the basis of the revival of the Tobin Tax – continued Sestito -, i.e. obtaining substantial revenue from the financial system, so as to be able to use the accumulated resources in the event of further crisis situations, and to use the fiscal instrument for fine regulation of the financial system”.
The judgment on the taxation of financial transactions elaborated by the CEO of Borsa Italiana is harsh: "It is surreal to introduce a tax in an isolated way, as Italy has done - said Raffaele Jerusalmi - and discourage the Italian saver from investing in companies of his Village. The second negative element is the complexity, which alienates investors”.
For the number one of Borsa Italiana, the introduction of the Tobin tax has led to a 15-20% contraction in trading volumes for instruments traded on the regulated market.
