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JOURNAL OF INTERDISCIPLINARY RESEARCH

5 Conclusion

Our assumption why the FTT should be introduced at the level
of EU was that it promotes economic growth and eliminates
short-term speculative market activity that can cause instability
in the economy. According to our results of the regression
analysis, the positive relationship between FTT and economic
growth was not confirmed, and the tax has only a negligible
negative trend. However, taxing only equity instruments would
increase the volatility of the stock index price in the short-term
period and reduce the volume of market activities in the long-
term period. Should FTT be introduced in the euro area, we
consider modifying the original proposal from 2013, which
included all transaction transactions on the market in the tax
base, i.e. both equity, debt, and derivative instruments. In the
proposal from 2019, the FTT only taxes transfers with shares,
what is a better alternative. To maintain the competitive
advantage of stock companies, it is more advantageous to keep
derivative financial transactions untaxed, mainly due to the
potential decrease in trading activities, as they are main
instruments in the risk management strategy.

An opportunity for further research in the field of FTT is to
analyse in more detail the economic impact of this tax, as current
empirical studies provide conflicting conclusions or analyse the
economic stability and FTT to a small context. The challenge is
to identify the effect of the tax on the effectiveness of risk
management, which can help a company achieve a significant
competitive advantage. In the context of taxation of the banking
sector and the effect on economic output, it is welcome to
compare fiscal taxation of the financial and non-financial
economic entities, or to examine the relationship between FTT
and bank profitability, gross fixed capital formation or individual
types of financial assets.

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