Lithuanian government forces banks to share record profits

LITHUANIA – LEGISLATION

Commercial banks, which have made impressive profits this year and last year due to exceptional circumstances, including an interest rate hike by the European Central Bank, will have to share some of the money they have earned.

Lithuanian government forces banks to share record profits
Swedbank, Luminor и SEB / Photo by BNS

On Tuesday, the Seimas of the Republic of Lithuania approved a temporary solidarity fee for banks to be used for national defence.

The draft was supported by 103 lawmakers, 12 opposed and 13 abstained. The temporary tax would amount to 60% of banks’ net interest income, which is more than 50% higher than the average for the four regular fiscal years. The tax will come into force as early as this year and will be in force for two years until 2025.

The new tax is planned to raise some 410 million euros, which will be used for civilian and military purposes, as well as to fund the maintenance of transport infrastructure near the Rudnikai test site.

Source: 15min.lt

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