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Global Economy » Article / Declaration

G-20: Take Action on Financial Transaction Taxes

October 27, 2010 ·

International civil society organizations urge G-20 leaders to make progress on taxing financial speculation at summit in Seoul.

This statement, endorsed by more than 183 civil society organizations in 42 countries, urges G-20 leaders to take action to adopt financial transactions taxes. These organizations have long advocated that such taxes are a practical way to generate revenues needed to fill domestic and international financing gaps and discourage the type of short-term financial speculation that has little social value but poses high risks to the economy.

The statement cites several examples of how the case for an FTT has been strengthened in recent months with new inputs from sometimes unexpected sources. For example, a new technical paper by the Internatioal Monetary Fund points out that most G20 countries have already implemented some form of transaction tax and offers tips on designing the taxes to make them most effective.

The statement also confirms that such taxes can generate substantial revenues, backing up a European Commission report which estimates that an international FTT could generate more than $1 trillion per year. As one of the few options that could generate the financial resources needed to pay for the costs of the global crisis, FTT deserves a central spot on the G-20 agenda.

Read the full statement, G-20: Take Action on Financial Transaction Taxes.

The statement is also available in French, German, Italian, Russian, and Spanish. Contact sarah@ips-dc.org for copies.