Lithuania’s banks pay €102mn in second windfall tax instalment

By bne IntelliNews December 3, 2023

Eight Lithuanian commercial banks and credit unions have paid €101.6mn, the so-called solidarity tax, a temporary levy on excess profits, the State Tax Inspectorate told BNS, a Lithuanians newswire, BNS and LRT.lt, the website of Lithuanian public broadcaster LRT, reported on December 1.

“Solidarity levy premiums amounting to €101.6mn have already been paid and eight financial institutions have transferred them,” Ruta Asadauskaite, spokeswoman for the tax authority, told BNS. 

Siauliu Bankas said earlier it would transfer more than €2.6mn in the second windfall tax instalment. And Luminor already had transferred €12.5mn at the beginning of the week. The other major banks are yet to announce the amounts they have paid.

Banks in Lithuania had until the end of November 30 to make the second payment.

The Bank of Lithuania estimates that the proceeds from the windfall tax will exceed €100mn for the third quarter of this year, and that the total contribution could reach around €250mn this year, BNS and LRT.lt said.

As reported by bne IntelliNews, the Lithuanian government introduced the tax in response to windfall profits enjoyed by the banks in Lithuania thanks to the interest rate hikes by the European Central Bank.

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