Austria's SPÖ Demands 'Solidarity Tax' Levied On Banks

by Ulrika Lomas, Tax-News.com, Brussels

19 January 2010

Hot on the heels of the US, the Social Democratic Party of Austria (SPÖ) has called for the introduction of a solidarity tax levied on banks.

According to the SPÖ’s economic speaker, Christoph Matznetter, given that the country’s banks have, for some years, earned a good living from speculative investments, they should therefore be required to pay a contribution towards overcoming the economic and financial crisis.

Matznetter nevertheless declined to comment on a precise figure for the proposed new levy, preferring instead to seek advice from financial institutions.

Director-General of the Federal Chamber of Labour, Werner Muhm, has, however, emphasized that any revenue derived from the solidarity tax should flow directly into the national budget.

Matznetter and Muhm form part of the Social Democrat’s internal working group on tax, which aims to put forward its proposals on equity distribution to the National Assembly inquiry shortly.

Among key proposals are plans to remove tax privileges for private foundations, and to tax profits from the sale of stock market shares for an unlimited period.

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