Irish budget expected to deliver new levy on banks

The Irish finance minister is expected to announce a new levy on foreign and domestic banks when he delivers the budget.

The Irish finance minister is expected to announce a new levy on foreign and domestic banks when he delivers the budget.

A higher levy of around €150m ($202m) on all foreign and domestic retail banks is expected, although the Sunday Times reported a government source as saying the charge could be anywhere between €100m-€200m.

According to the Sunday Times, the source said: "It was decided the banks should make a contribution to the €2.5bn euro (budget) adjustment, so a levy of between €100m-€200m was agreed by the EMC."

Foreign retail banks such as Ulster Bank, KBC Bank Ireland and Danske Bank will be affected by the new levy.

The Cabinet is also expected to impose a 8% increase on the Deposit Interest Retention Tax (DIRT), bringing the savings tax from 33 to 41%, level with income tax. This will force savers to hand over €41 for every €100 they earn in interest.

 

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