Polish government unveils bank tax bill with added shock for insurers

By bne IntelliNews December 3, 2015

The Polish government submitted on December 3 a bill on its plan to tax selected financial institutions from February 1, 2016, local media reported on December 3. The rate of the levy will be in line with expectations for banks, but there was a nasty sting in the tail for insurers.

The bank tax was a flagship campaign pledge from Law and Justice (PiS) in the run up to its victory in the October election. The party has moved quickly to put an introductory bill together, and was set to submit it to parliament on December 3, MP Wojciech Jasinski told PAP. PiS hopes that revenue from the tax will total as much as PLN6bn annually, and has earmarked the funds to help drive a raft of social spending pledges.

The bill will open the way for the government to tax assets exceeding PLN4bn at a rate of 0.39% for banks and financial institutions such credit unions. However, it also seeks to wages a 0.6% levy on assets of insurance companies, surprising the market. The news sent the share price of state-controlled insurer PZU to a three-year low, as it dropped over 6% on the Warsaw Stock Exchange in afternoon trade.

The tax will add to inflated costs for the banking sector. However, lenders' shares had mostly priced in the 0.39% tax, with additional issues such as a likely pricey hit on Swiss franc mortgages having seen stocks in the sector slump throughout the year.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Uzbekistan’s key rate held at 14% as central bank points to fears over reacceleration of inflation

Uzbekistan's central bank on April 25 kept its benchmark interest rate on hold at 14%, pointing to risks that inflation could once more accelerate. Planned hikes of state-regulated prices for ... more

Bulgaria's BACB to acquire 99.94% of Tokuda Bank

The Bulgarian-American Credit Bank said on April 16 it has agreed to acquire 99.94% of local Tokuda Bank from Japan-based Tokushukai Incorporated. The two banks are among the smallest in Bulgaria ... more

EIF signs guarantee agreements with 11 banks in Western Balkans, unlocking €750mn for small businesses

The European Investment Fund (EIF), part of the EIB Group, said on April 15 that it has signed guarantee agreements with 11 banks and financial intermediaries in the Western Balkans. These ... more

Follow Us On

Most Read

  1. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    1 month ago
  2. Don't mention the "D" word - Ukraine
    7 days ago
  3. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    10 days ago
  4. The models are wrong, climate change is accelerating faster than predicted
    2 days ago
  5. The 'wet-bulb' set to kill hundreds of thousands of people if temperatures and humidity levels continue to rise
    5 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    28 days ago
  2. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  3. BRICS announce a blockchain-based payment system to create a common currency
    30 days ago
  4. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    1 month ago
  5. Saudi Arabia to scale back plans for Neom city
    17 days ago

Reports

Dismiss