aA
A proposed tax on banking assets would make loans for households and businesses more expensive, the Lithuanian Banks' Association (LBA) warned on Tuesday.
Kraustymasis
Kraustymasis
© Adobe Stock

The Electoral Action of Poles in Lithuania–Christian Families Alliance has proposed to introduce a tax on bank assets to raise funds for social needs.

A preliminary impact analysis carried out by LBA shows that the proposed tax may push up prices for banking services by 8 percent.

"We estimate that services to customers may become by up to 8 percent more expensive, potentially costing every bank customer about 60 euro cents per month," Vilius Tamkvaitis, head of analysis at LBA, said at a news conference.

The new tax would cause long-term damage that could be four times as high its short-term benefit, he warned.

The association estimates that while the proposed tax would 100 bring in 100 million euros in extra budget revenue, the economy would lose between 150 million and 450 million euros.

LBA President Mantas Zalatorius says there are other ways of generating additional budget revenue.

"The first thing to speak about is the public sector's efficiency which is not the best (...). Also, we have already spoken about the fight against the shadow (economy)," Zalatorius said, adding that "it is not difficult to reclaim 100 million euros from the shadow (economy)" if there is the political will.

"There are also many other ways and reducing (tax) cuts is one of them. That palette of all possible solutions is on the table," he said.

Back in March 2016, the Electoral Action of Poles in Lithuania–Christian Families Alliance registered draft amendments that call for taxing financial institutions' assets worth over 100 million euros and insurance companies' assets worth over 50 million euros at an annual rate of 0.4 percent.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.

Minister: Vilnius Airport building must be demolished (2)

Built seven decades ago, Vilnius Airport's main arrival terminal does not meet today's needs,...

Small country with a huge startup: the success of CoinGate

Silicon Valley is no longer synonymous with innovation. More and more small countries are entering the...

Some firms say Chinese partners refuse to renew contracts

Some Lithuanian companies working with China say that their partners in China are not renewing or...

Lithuanian startup committed to facing the truth and fixing reality

The most recent edition of the Digiconomist Bitcoin Energy Consumption Index found that the total...

Taiwanese delegation to visit Lithuania in late October (2)

A Taiwanese delegation of officials and business people will visit Lithuania in late October, Taiwan's...

Top news

Lithuania mulls making masks mandatory again as it moves into "black" zone

As Lithuania has moved into the "black" zone under the color-based pandemic system, the country's...

Probe in Lithuania: Chinese 5G smartphones pose cyber security risks

An investigation into three smartphones produced by Chinese companies Huawei, Xiaomi and OnePlus,...

1 155 new COVID-19 cases

On Monday, 1 155 new COVID-19 cases were recorded in Lithuania. Since the beginning of the pandemic,...

Two illegal migrants sentenced for border crossing in Lithuania

Two illegal migrants who crossed into Lithuania from Belarus illegally have been sentenced in...

Minister: Vilnius Airport building must be demolished (2)

Built seven decades ago, Vilnius Airport's main arrival terminal does not meet today's needs,...