Belgian Initiative For A Currency Transaction Tax

EDM number 1560 in 2003-04, proposed by Harry Barnes on 20/07/2004.

That this House warmly welcomes the new legislation passed by the Belgium Parliament on 1st July for currency transaction tax (CTT), which serves as a blueprint for the raising of billions in revenue to benefit the world's poorest people and help meet the UN Millennium Development Goals (MDGs); notes that this new law surpasses previous CTT propositions because the tax rate in normal trading conditions is sufficiently low as not to adversely affect the market; acknowledges that this law is testament to the feasibility of the technical aspects of the CTT; further notes that the legislation includes the mechanism of a higher rate tax triggered in the event of a sharp change in the value of a currency to act as a circuit-breaker, to guard against financial shocks and seriously enhance economic stability for the protection of employment and business; further welcomes HM Treasury's acknowledgement that new income streams are urgently required to pay for the MDGs; further recognises the Treasury's efforts to achieve the International Finance Facility to help pay for the MDGs; and further nots that only by means of complementary income streams can a doubling of aid for the reduction and eradication of world poverty realistically be achieved, which is the leadership opportunity for the UK Presidency of both the G8 and the European Union in 2005.

This motion has been signed by a total of 52 MPs.