Bank tax yields surplus In 2013

The annual bank tax levied on credit institutions in Belgium will yield €16m more in 2013 than initially forecast, writes Tax News’ Ulrika Lomas. In a written parliamentary response, finance minister Koen Geens announced that the bank tax will serve to generate around €96m for the state’s coffers this year. The Government had budgeted for revenues from the tax totalling approximately €80m in 2013. The budgetary target for this year will therefore be amply met, the minister stressed.

Established last year, Belgium's bank tax is currently levied on savings accounts at rates varying between 0.03% and 0.12%, depending on lending levels. The €16m predicted surplus is attributable to the fact that total savings are significantly higher than anticipated. The levy has been vehemently criticised from the outset by the country's banking and insurance sectors, however, with many credit institutions insistent that the variation in the tax rates applied constitutes a form of discrimination. To prevent an appeal being submitted to the Constitutional Court, the Belgian Government acted swiftly, agreeing to apply a single rate of tax in future. From 2014, a flat rate of tax of 0.0435% is to be imposed. The new rate ensures that the measure is budget neutral.