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Germany's CDU Favours Bank Tax,
by Ulrika Lomas, Tax-News.com, Brussels
Thursday, March 11, 2010
Germany’s Christian Democratic Union (CDU) party are eager to levy a special
tax on banks as a contribution to the cost of rescuing the financial sector.
According to the party’s deputy leader, Michael Meister, the Federal
Finance Ministry is currently drafting – as a matter of priority –
a new banking regulation, which is due to be presented in May ahead of the G20
meeting in Berlin.
The Christian Social Union’s (CSU) General Secretary, Alexander Dobrindt,
has also emphasized the need to bring the financial sector to account. Dobrindt
has called for the introduction of a flat rate 0.1% tax levied on the balance
of banks. Banking bonuses should also be taxed, he added.
The recent comments have provoked outrage from the CDU’s coalition partner,
the Free Democratic Party (FDP). Rejecting the idea, the FDP’s General
Secretary, Christian Lindner, has explained that not all banks are responsible
for the crisis. Reputable institutions should therefore not be held to account,
he added. Lindner has also ruled out the idea of a financial transactions tax.
.
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