Slovenia Unveils New Bank Tax

by Ulrika Lomas, Tax-News.com, Brussels

02 May 2011

Determined to stimulate lending by local banks to non-financial institutions in Slovenia, the government has recently approved a new law providing for the introduction of a 0.1% tax on banks’ balance sum, to be imposed under certain conditions.

The proposed law stipulates that the tax will be levied on banks unless loans to non-financial institutions amount to at least 60% of their balance sheet assets, or unless loans to industry increase by more than 5% over the course of a year. Under the plans, the country’s state export and development bank will also remain exempt from the new levy along with banks providing consumer credit.

According to the Slovenian Finance Minister Franc Krizanic, the proposed tax is not intended to finance the treasury, but to overcome the issue of reduced credit activity which is proving highly damaging to the country’s economy. The levy is expected to generate in the region of EUR5m in additional revenues.

Vehemently opposed to the government’s latest plans, the Bank of Slovenia argues that the tax will merely serve to place an additional burden on already struggling local banks.

Although the government’s proposed special tax will not be subject to a referendum, in stark contrast to other reforms, the bill does, however, require approval by parliament.

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