TaxCorporate TaxBankers facing new tax hit on profits and pay

Bankers facing new tax hit on profits and pay

Banking industry may have to weather a financial activities tax on top of the levy announced in the emergency budget

The banking industry is in the sights of the UK government again after
Treasury officials warned that the sector could be hit with another tax.

George Osborne has already announced a banking levy on the balance sheets of
financial institutions in the emergency Budget, but the sector could now be hit
again with a raid on profits and bankers’ wages.

The Financial Activities Tax could raise an extra £2.5bn,
the
Telegraph reported
.

In a speech to the BBA on Monday, Mark Hoban, the financial secretary to the
Treasury warned that options were being considered.

“We will explore the costs and benefits of a Financial Activities Tax on
profits and remuneration, and we will ask the FSA to examine further options in
the forthcoming review of its remuneration code.”

Further reading:

IMF
plans for bank tax panned by global finance community

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