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UNI Europa calls upon Danish Government to withdraw increase of payroll tax for finance sector. It is effectively a tax on labour, jobs and consumers while speculators go scot free.



The government currently holding the EU presidency wants to increase the payroll tax on the finance industry to 12.3% and thus will put further pressure on wages in the sector. It has no regulatory effect apart from being an incentive to reduce the number of employees and distort wage development with detrimental effects on employment and growth. Instead, the government should support an EU-wide financial transaction tax.



The finance sector in Europe needs to live up to its responsibility and to pay its part to society and fiscal consolidation, but finance employees should never pay with their jobs to achieve this.



A payroll tax could also have unfortunate effects on financial consumers, since fewer finance employees inevitably would lead to less time for customer care and quality advice giving.



It is quite surprising and deeply regrettable that the Danish government – a centrum-left coalition - explicitly wants to tax labour at a time when Europe needs focus on employment and growth. Especially when the same tax revenue could be raised much smarter and more efficiently with other tax instruments currently on the EU agenda – such as the financial transaction tax or balance sheet taxation.



The Danish government is sending the wrong signals to finance workers, finance consumers and the entire EU growth agenda with its current proposal on payroll tax.