§ Mr. CohenTo ask the Chancellor of the Exchequer if he will assess the (i) advantages and (ii) disadvantages of the imposition by the UK of taxation upon borrowings in foreign currencies by UK domestic companies; what discussions he has had on such proposals in respect of other countries vulnerable to currency stocks in relevant international economic forums; if he will estimate the taxation income for the United Kingdom of a 1 per cent. tax rate; and if he will make a statement. [88327]
§ Ms HewittDuring the wide consultations which have been carried out to forge a consensus on necessary reforms to the international financial system, consideration has been given to a range of proposals for taxation of foreign currency transactions. Such proposals raise a number of practical difficulties which we have considered but do not believe could be overcome. Similarly, it would be extremely difficult to determine robust estimates of the revenue yield, which could be provided only at disproportionate cost.