The Financial Transaction Tax (FTT) is a system proposed by the European Commission to harmonise the currently-uncoordinated Member States’ initiatives on indirect taxation of financial transactions. Such a scheme is essential to ensure a properly functioning financial service sector within the Single Market, and to avoid any potential double taxation.
 
Within this context, EFAMA maintains it’s crucial to protect tax neutrality for investment funds. We believe additional layers of taxation in the investment chain would ultimately be passed on to end investors, to the detriment of European consumers. As a result, an FTT would directly reduce investors’ return on investment. We believe the introduction of an FTT in the EU would lead to further distortions of its capital markets, hindering the creation of a Capital Markets Union (CMU).