G20 finance ministers should levy a new tax on financial transactions to help millions of people plunged into poverty by the economic crisis and climate change, Oxfam said today ahead of the group’s gathering in St Andrews, Scotland.
Urgent action is needed to help developing countries cope with the global slump, which is pushing 100 more people into extreme poverty every minute and leaving governments struggling to pay for clinics and schools, Oxfam said.
More than $600bn could be raised annually by a global tax of 0.05 per cent on currency, share and derivative transactions. Revenue from the tax could also be used to help poor countries cope with climate change and to reduce their own carbon emissions. Funding for poor countries is currently a major stumbling block in negotiations as the clock ticks towards the Copenhagen summit next month.
Max Lawson, Oxfam senior policy adviser, said: “Imposing a tiny tax equivalent to just $5 for every $10,000 traded would mean smaller bonuses for bankers but make a massive difference to the world’s poor.
“Every minute around the world 100 more people are being forced to live on less than $1.25-a-day as a result of a crisis they did nothing to cause. People in Nairobi and Lusaka should not be forced to bear the cost of mistakes made in New York and London.”
On climate change Lawson said: “Money to help poor countries cope with climate change and cut emissions must be additional to the 0.7 per cent of national income rich countries have promised for aid.
“Poor countries will not sign-up for a climate deal that takes money from their schools and clinics to pay for flood defences. A tax on banks could provide a solution without asking ordinary rich country taxpayers to foot the bill.”
G20 Heads of State agreed in September to ask the IMF to examine how financial transaction taxes could be implemented, following pressure from France and Germany. Oxfam is calling on finance ministers to publicly back the principle of taxing banks to bailout out poor countries hit hardest by the economic crisis.
Oxfam is also calling on G20 finance ministers to extend new curbs on tax havens to ensure that poor as well as rich countries benefit. Poor countries lose tax revenue worth at least $160bn-a-year as a result of havens.
For further information or to arrange an interview: Jon Slater 07876 476403/ jslater@oxfam.org.uk
More on Oxfam and climate change
Tags: bank tax, climate change, economic crisis, g20
Good morning,
I support your clever request of imposing a tax on banks. After all if all these virtual gamblings had not gone out of control, the world economy would not have been put in a state of near collapse.
November 6th, 2009 at 10:48 amBut then how could it be guaranteed that the loss incurred to the banks won’t be somehow ‘passed on to customers in the form of new bank charges?’.
no guarantee but 5 in every 10.000 is not a lot -
November 11th, 2009 at 7:52 pmanyway its would be our opportunity to take control and work towards a fairer banking system by keeping up the pressure on them and on politicians