The European Union proposes that a transaction tax be assessed on financial institutions, the EU announced Wednesday.
Planned to take effect in 2014, the tax is expected to raise approximately 57 billion euros ($78 billion) per year. The EU intends to offer its proposal, after discussion by member states, to the G20 nations at a November summit meeting.
The plan is to be effective throughout all 27 EU member nations, Bloomberg reported.
In a statement, the European Commission (EC), the EU’s Brussels-based executive, said that it would set minimum tax rates for financial transactions and is aiming at banks, investment firms, insurance companies, pension funds, stockbrokers and hedge funds, as well as other kinds of financial firms. It would assess trading of stocks and bonds at a rate of 0.1%, with a rate of 0.01% for derivatives contracts.