The European Commission considering suggestions for a lower rate of financial transaction tax (FTT) than originally planned.

It is believed both government bonds and pension funds should remain within the scope of any future Tobin tax, “a reduced rate, coupled with a rendezvous clause could constitute a suitable way forward which should be further examined.”

Current proposed text recommendeds; 0.1 percent tax on stocks and bonds, and 0.01 percent on derivatives trades. But the suggestion is that trades in sovereign bonds should be taxed at only 0.05 percent, until January 1, 2017.  Similarly, trades of pension funds should be taxed at 0.05 percent for stocks and bonds, and 0.005 percent for derivatives, until the same date.

The resolution seeks to link FTT payment to acquisition of legal ownership rights, whilst ensuring there is not certainty of security of title, if the buyer has not paid FTT.