Tax Justice media release
21 June 2011

Global Day of Action for a Financial Transaction Tax (22 June)

The Tax Justice campaign supports today’s Global Day of Action for a Financial Transaction Tax coordinated by Oxfam in Britain.

“Momentum is building worldwide for financial transaction taxes that target the banks, speculators and big corporates,” says Vaughan Gunson, New Zealand’s Tax Justice campaign coordinator.

“The international money men who caused the global financial crisis must be made to pay the bill,” says Gunson. “Financial transaction taxes are the best way to make that happen.”

It’s widely accepted that financial transaction taxes levied internationally could raise hundreds of billions of dollars, which could then be used to fund programmes that help the world’s poorest. (For more information on financial transaction taxes and the Global Day of Action go to http://www.makefinancework.org/home-english/financial-transaction-tax/)

The Tax Justice campaign in New Zealand is calling on the government to seriously look at how a FTT could be applied here.

“There’s an urgent need to broaden the tax base in this country to maintain public services, protect our people from the effects of the economic crisis, and re-build Christchurch,” says Gunson,

“The beauty of an FTT is that would be not squeeze more tax out of people already paying their fair share.”

“It is a very progressive tax, because those who end up paying the most tax would be those involved in high frequency trading in New Zealand’s financial markets – these mostly overseas speculators are currently paying no tax to the government,” says Gunson.

Mr Gunson says a small percentage tax on the money flows of financial speculators operating in New Zealand markets would raise significant government revenue.

“Here’s a solution to the government’s debt problem that it would be irresponsible for politicians to ignore,” says Gunson.

On Wednesday, Tax Justice supporters will be out on the streets continuing to collect signatures for a petition calling on Parliament to: 1. Remove GST from food; and 2. Tax financial speculation.

40,000 signatures have so far been collected for the Tax Justice petition, which will be presented to Parliament on Tuesday 16 August. Su’a William Sio, Labour MP for Mangere, will be receiving the petition and presenting it to the House.

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