we do not rule out that the bank solidarity tax will have to be extended

by times news cr

2024-04-28 17:43:03

“Bank profits, published information on last year’s bank profits, about 1 billion EUR 250 million is the earnings, already after deducting the solidarity tax. euros. The Social Democrats do not rule out that the bank solidarity tax will have to be extended,” V. Blinkevičiūtė told reporters on Saturday.

“All the more, we believe that banking supervisory authorities need to become more active. Here I am also talking about the Bank of Lithuania, whose activity is insufficient in assessing the current situation in the banking sector”, she noted. ELTA reminds that at the beginning of May last year, the Seimas adopted the Law on Temporary Bank Solidarity Contribution proposed by the Ministry of Finance.

The draft law established the size of the temporary solidarity contribution applied due to the application of state support measures to stimulate the economy, inflation and the changed direction of the monetary policy, in the event of the formation of an unexpected significant financial result, the purpose of using the received funds, the procedure for the calculation, declaration, payment and administration of the temporary solidarity contribution.

Funds collected under the Act are used to finance adaptation or construction projects for military mobility and dual-use (civilian and military) transport infrastructure, as well as military infrastructure needed to provide host country support.

At that time, the opposition of the Seimas expressed support for the solidarity contribution of the banks, and it was not supported by the absolute majority of representatives of the Liberal Movement and Freedom Party factions.

It was predicted that about 130 million will be collected in the state budget in 2023 due to the solidarity contribution of the banks. EUR, in 2024 – about 230 million. euros, and in 2025 – about 50 million. euros.

The temporary solidarity contribution is applied to all credit institutions, with the exception of 400 million. euros, i.e. 1 percent from the deposit limit of all residents, but a coefficient reflecting the share of each credit institution’s activity in Lithuania is applied to the base. In this way, it is taken into account that the atypical situation that has arisen was formed mainly due to economic processes and operations and market imperfections in Lithuania, and not due to the business decisions of financial institutions. At the moment, 18 participants operate in the Lithuanian banking sector: 13 have bank licenses, another 5 operate as branches of foreign banks. The majority of the market is held by Swedbank, SEB and Luminor.

2024-04-28 17:43:03

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