Bank transaction tax
|An aspect of fiscal policy|
Australian bank account debits tax
The tax was introduced by the federal government in 1982. The power to levy the tax was transferred to the states in 1990, except for Norfolk Island which did not charge it. The tax was abolished by the states on dates between 1 July 2002 and 1 July 2005 as part of the package of reforms for the introduction of the goods and services tax.
As globalization eroded the efficiency of conventional taxes such as value added taxes, various Latin American countries applied new taxation levied on bank transactions. Argentina introduced a bank transaction tax in 1984 before it was abolished in 1992.
In 1993 Brazil implemented a temporary "CPMF" tax at a rate between 0.25% and 0.38% to fund its health system. The tax lasted until 2007. In 2011, during the presidential election, there was renewed discussion about a possible re-introduction of the CPMF under the name "Social contribution for health" (CSS).
The broad based tax levied on all debit (and/or credit) entries on bank accounts proved to be evasion-proof, more efficient and less costly than orthodox tax models. Furthermore, the significant revenue-raising capacity of bank transactions taxation revived the centuries old ideal of the Single Tax.
According to a study published in January 2010 by Rodney Schmidt, Stephan Schulmeister and Bruno Jetin “it is technically easy to collect a financial tax from exchanges ... transactions taxes can be collected by the central counterparty at the point of the trade, or automatically in the clearing or settlement process."
- Bank account debits tax
- Bank tax
- Financial markets
- Financial transaction tax
- Money market
- Tobin tax
- Transfer tax
- Rodney Schmidt, Principal Researcher, The North-South Institute, Ottawa (28 January 2010). "Notes on the Feasibility and Impact of a General Financial Transactions Tax; Civil society consultation with the IMF on 28 January 2010". International Monetary Fund. Retrieved 24 June 2010.
- Oposição derrota governo e Senado rejeita prorrogação da CPMF - Folha Online, 13 de dezembro de 2007, see also Portuguese Wikipedia article
- Marcos Cintra (July, 2009). "Bank transactions: pathway to the single tax ideal. A modern tax technology;the Brazilian experience with a bank transactions tax (1993-2007)". University Library of Munich, Germany in its series MPRA Paper with number 16710. Research Papers in Economics. Retrieved 28 June 2010.
- Bretton Woods Project (April 16, 2010). "Rewriting the rules on exchange rates - See lower box: BOX: Controversy over IMF's likely dismissal of financial transaction taxes". Bretton Woods Project. Archived from the original on 3 July 2010. Retrieved 24 June 2010.
- Cintra, Marcos (July 2009). Bank transactions: pathway to the single tax ideal. A modern tax technology;the Brazilian experience with a bank transactions tax (1993-2007). University Library of Munich, Germany in its series MPRA Paper with number 16710. Research Papers in Economics. Retrieved 28 June 2010.