„We want bank service fees for people in Lithuania to be lower. We want banks to be ’friendlier’ when providing loans, to lend to businesses more, for their investments and so on. To achieve this, new players must come to Lithuania. If the opposition’s populist idea to introduce the solidarity tax permanently is approved, Lithuania would become the most unfriendly country for new banks to enter,“ the minister told reporters Wednesday.
Armonaitė added that a temporary extension of the levy might be considered as this measure would be concrete and enable Lithuania to make an advance payment and acquire more air defence systems.
As reported, the Government on Wednesday approved the proposal to extend the temporary bank solidarity contribution, a tax on extra bank profits, for one more year. Parliament is expected to consider the matter urgently.
The tax would apply on net interest income that exceeds income of the last four years by 50%. However, the period for which taxes are calculated would be changed from 2018-2021 to 2019-2022. The move is expected to generate EUR 60 million of budgetary revenue.
Nonetheless, representatives of the opposition have suggested imposing the bank solidarity contribution indefinitely.
