An “extraordinary levy” on the Portuguese banking sector is expected to generate €565 million income for the state’s coffers by 2014.
The tax, implemented in 2011 by the Sócrates government, raked in €139 million for the state in 2011 and €136 million in 2012.
According to government estimations, in 2013 the tax is likely to provide €120 million for the state, 12% less than last year. However, in 2014 the banking sector is expected to generate €170 million, 42% more than in 2013 due to an increase of the tax foreseen in next year’s state budget.
According to Dinheiro Vivo online publication, of the five largest banks in Portugal Banco Comercial Português (BCP) paid the highest amount in 2011 and 2012 – €66 million – followed by Caixa Geral de Depósitos (CGD), which paid €59.2 million in the same two-year period, and Banco Espírito Santo (BES) with a €58.4 million tax contribution. BPI and Santander Totta paid €29.2 million and €26.5 million, respectively, into the state’s coffers.
Fernando Faria de Oliveira, president of the Portuguese Banking Association (APB), told Lusa news agency that the tax increase in 2014 is “unpleasant news” for the sector, as it is imposed irrespective of whether banks make a profit or suffer losses.
