EU claims Tobin tax will halve national contributions

Lewandowski, commissioner for financial programming and budget, says contributions would be cut by €54 billion (£45.1 billion) in 2020.

A study prepared by the European Union (EU), revealed that the UK’s contribution would fall by almost €7.7 billion.

Germany would see the biggest fall, with contributions falling by more than €10.7 billion. France would save €8.8 billion, Italy €6.5 billion and Spain €4.7 billion.

Other significant savers would include the Netherlands, saving €2.6 billion, and Belgium, which would see its contribution reduced by €1.6 billion.

Lewandowski says: “The financial sector does not pay VAT and has received massive support by taxpayer’s money.

“Taxing the transactions of all financial institutions at rates as low as 0.01% is only fair. Furthermore, the estimated revenue which the tax would generate by 2020 can only be welcomed by cash-strapped governments across the EU.”

The controversial tax would have raised €57 billion in 2010, with an estimated €81 billion to be raised by 2020.

The European Commission has suggested two-thirds of the revenue be used to finance EU expenditure. National contributions currently make up 73% of the EU’s budget, or €93.7 billion.

In its latest release, it claimed the proposed EU-wide tax would be a “first step” towards application at a global level.

The move to introduce a tax has been rejected more recently by UK prime minister David Cameron.