Forex tax could create $30 billion for aid: experts

20 Jul, 2010

A global tax on foreign exchange trades could raise 30 billion dollars (23 billion euros) to fight poverty with development projects, an international group of finance experts said in a report. The report by the Leading Group, commissioned by 12 governments, said a tax on currency deals would mean an extra 0.005 percent on each trade and would be simple to implement as it could be collected under existing mechanisms.
The proceeds could be paid into a central pool and shared out among poor nations, suggested the report. Leaders of the Group of 20 top economies last month shied away from a global tax on banks, allowing each country to choose whether to impose the levy.
Post-economic crisis moves to tax the finance industry have moved higher up the political agenda but still divide world leaders. The Leading Group on Innovative Financing for Development is a body that brings together 59 countries, various international institutions and non-governmental organisations. It is aimed at promoting discussions and actions about setting up innovative development financing mechanisms.

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