Even though the tax on fixed-income securities was much lower than that on equities, the impact on market trading was much more dramatic. During the first week of the tax, the volume of bond trading fell by 85%, even though the tax rate on five-year bonds was only 0.003%. The volume of futures trading fell by 98% and the options trading market disappeared. On 15 April 1990, the tax on fixed-income securities was abolished. In January 1991 the rates on the remaining taxes were cut in half and by the end of the year they were abolished completely. Once the taxes were eliminated, trading volumes returned and grew substantially in the 1990s.
even though the tax on fixed-income securities was much lower than that on equities the impact on market trading was much more dramatic during the first week of the tax the volume of bond trading fell by 85% even though the tax rate on five-year bonds was only 0003% the volume of futures trading fell by 98% and the options trading market disappeared on 15 april 1990 the tax on fixed-income securities was abolished in january 1991 the rates on the remaining taxes were cut in half and by the end of the year they were abolished completely once the taxes were eliminated trading volumes returned and grew substantially in the 1990s