Russia not to support Europe’s new financial tax

Russia will not support the European Commission’s initiative to introduce a new tax on financial transactions in the European Union to increase EU budget revenues or levy a similar tax inside the country, Kremlin aide Arkady Dvorkovich said on Monday.

“We are not against Germany or France introducing this tax but we’ll not support a collective decision on the introduction of this tax… Each country chooses on its own its sovereign policy and this is not the issue that must be resolved at the supranational level,” Dvorkovich said. 

In late September, the European Commission suggested imposing a tax on financial transactions in the EU at a rate of between 0.01 percent and 0.1 percent, depending on the types of financial instruments used during the operations. The new tax may bring in 57 billion euros annually. The commission suggested introducing the tax from 2014.

Dvorkovich said Russia’s priorities, such as the creation of an international financial centre in Moscow and the development of the domestic financial sector, differed from the EU’s priorities.

“We consider it absolutely illogical (proceeding from these priorities) to introduce any additional tax on the financial sector or financial operations in Russia,” he said, adding that Russia could boost tax revenues without changing the tax system.

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