Vienna Stock Exchange: Tax on Securities Gains Damages Austrian Economy
Massive disadvantages for Austrian companies because of financing made more difficult are feared by the members of the of the Vienna Stock Exchange board, Michael Buhl and Heinrich Schaller.
"A functioning economy requires risk capital provided by the long-term investments made by private investors. Because with the generated capital, the competitiveness of Austrian companies will be maintained or increased, business growth financed and new jobs created and safeguarded", according to the comment from the Vienna Stock Exchange on the tax on securities gains introduced as of 2011.
Michael Buhl, member of the board of the Vienna Stock Exchange, fears further punishment of long-term investors is forthcoming. "For this reason we will not tire stressing that the introduction of the securities capital gains tax as it is currently planned, is poison for the Austrian capital market", says the Stock Exchange board member Heinrich Schaller.
The consequences for businesses are huge. A securities capital gains tax makes equity financing less attractive and companies will be again increasingly dependent on loan capital from the banks, which goes hand in hand with the loss of independence and competitiveness, according to what is being argued. This would result in considerable disadvantages for Austrian companies. The Vienna Stock Exchange sees the detriment not only in terms of stability, growth potential and innovation, but also in relation to the newly introduced criteria for equity base under Basel III.