The increase to the short-term capital gains tax in 2013 changes a law that was in effect for barely six years and was able to standardize savings deposits taxes.
Continual changes of tax laws create insecurity, which could be justified if tax revenues increase. The Ministry of Finance claims that the measure combats speculation, but it seems clear that they are trying desperately to find revenues wherever they can because they can'ht find ways to cut spending. Poor results are expected because the biggest investment companies make the most high-volume trades.
Small investors will be hit hardest, and liquidity will flee from cash strapped markets. Once again, we are dealing with an ineffective tax hike.
