Policy Forum: The Financial Activities Tax
Posted: 2 Feb 2017
Date Written: February 1, 2017
This article considers key issues in the design of a financial activities tax, which is an addition-based value-added tax (VAT) applied to financial activities. The form of FAT discussed in the article by no means resolves all the difficulties associated with exemption within an invoice-credit form of VAT, but principle and such limited experience as exists suggest that it may offer a useful way ahead when more perfect solutions are not available.
Keywords: value-added tax; goods and services tax; financial services; financial institutions; tax neutrality; windfall profits
Suggested Citation: Suggested Citation