TaxAdministrationBanks face more tax pressure

Banks face more tax pressure

Deputy governor opens discussion on banks paying for rescue

Banks looked to set to come under increased financial pressure as debate
opened over the weekend on the subject of new taxes for the sector.

Paul Tucker, deputy governor of the Bank of England, proposed that banks
should be charged a levy to help pay for bail outs during future financial
crises.

He outlined the idea in a speech to the Institute of International Finance in
Istanbul.

He is quoted in The Times today saying: “When things get really bad
unfortunately the only part of the economy that can provide capital is the
fiscal authority. But that does not necessarily mean that the cost of providing
that should fall on the general taxpayer.”

Tucker’s comments came just days after it emerged that International Monetary
Fund was looking at the possibility of a world-wide tax on banks to compensate
for state aid during the crisis.

Both ideas further the argument triggered by Adair Turner when he publicly
discussed the idea of a Tobin tax – or a tax on all bank transactions. He said
applying special taxes to pre-remuneration profit was one way of reducing the
size and influence of a particular sector.

More:

International
bank tax mulled

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