2023-08-11 04:26:00
Italy is just one of the latest countries in Europe to introduce a tax on banks’ extra profits to help mortgage holders, writes La Stampa.
Bank officesPhoto: Luca Tettoni / robertharding / Profimedia
From Spain to Lithuania, from the Czech Republic to Sweden, there are many governments that have decided to tap into the profit boom generated by the ECB’s interest rate hike, with the aim of raising money for struggling families and businesses.
And even where the tax has not been introduced, public debate on the issue has been strong, as it has been in the UK or France, where there are, however, other measures to protect mortgage holders and account holders. currents.
SPAIN – the country wants to collect 3 billion euros by 2024 from the bank tax
The government’s goal is to collect 3 billion euros from the bank tax approved last year by 2024. And to achieve this goal, it applied a 4.8% tax on net interest and commission income of over 800 million euros.
The first installment was paid in February and lenders focused on the domestic market were particularly affected. CaixaBank, Spain’s largest credit institution, said the tax amounted to 373 million euros, or 44% of the 855 million euro net profit recorded in the first quarter.
The percentage was higher for Sabadell, which owns British bank TSB but has the most assets in Spain. Costs were 157 million euros, equivalent to 77% of the profit in the first quarter. Spain’s two biggest banks by market capitalization, Santander and BBVA, which have much larger international operations, were less affected.
FRANCE- companies with more than 5,000 employees should share more of their “exceptionally high” profits with employees
Emmanuel Macron said that companies with more than 5,000 employees should share more of their “exceptionally high” profits with employees, instead of resorting to the buyback process. However, the president ruled out the possibility of a tax on additional profits.
However, it should be noted that French banks are subject to an anti-usury law that limits the rate of quarterly growth in the cost of loans. In addition, France has a regulated savings program that accounts for just under 20% of bank deposits, with an inflation-linked return that adjusts faster than lending rates.
GREAT BRITAIN – since 2011 levies a tax on the global balance sheet assets of banks
London has not introduced a bank capital gains tax, but since 2011 has levied a tax on the global balance sheet assets of UK institutions and those linked to the UK operations of foreign banks.
GERMANY – public debate on the possibility of taxing additional bank profits
German banks’ net interest income is up between 50% and 70% compared to pre-Covid lows.
The jump sparked a wide public debate over the possibility of taxing the extra profits, but Finance Minister Christian Lindner ruled out intervention.
CZECH REPUBLIC – 60% tax on bank profits exceeding 120% of average annual turnover between 2018 and 2021
The lower house of the Czech Parliament approved in November a 60% tax on bank profits exceeding 120% of average annual turnover between 2018 and 2021. The aim is to raise around 3.5 billion euros to finance aid for households and businesses affected by the increase in electricity and gas prices.
HUNGARY – the Hungarian government has changed taxes on excess profits in key sectors of the economy
In a decree published in June, the Hungarian government amended taxes on excess profits in key sectors of the economy, stating that banks can reduce their weighting by up to 50% in 2024 if they increase their purchases of domestic government bonds. The executive also imposed a new “social tax” of 13% for certain types of investments, including earnings from interest on bank deposits.
LITHUANIA – The tax is 60% for the part of the net interest income that exceeds by 50% the average over the last four years
In May, the Lithuanian Parliament approved a tax on the banking sector’s net interest income for 2023 and 2024.
The tax is 60% on the part of the net interest income that exceeds by 50% the average over the last four years. It is estimated that 410 million euros have already been collected, an amount that will be used to strengthen the armed forces.
Material made with the support of the Rador agency
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