Polish banking lobby sees idea of excessive profit tax for banks as 'highly inappropriate'
The idea of an excessive profit tax for banks is highly inappropriate in our opinion, the chairman of the Polish banking lobby ZBP Tadeusz Bialek said in a statement.
"Of course, we can impose more taxes, but how are we going to finance the economy if we don't have any capital? The economy cannot function without banks. Banks are the lifeblood of the economy. Interest rates are falling, loans are becoming cheaper, and we are seeing growing demand from individuals for mortgages and from businesses for investment loans," said Bialek, quoted in the ZBP's statement.
"Let us finance the economy. It's time to put an end to these populist slogans that treat banks as scapegoats," he added.
Polish banking lobby ZBP stressed in the statement that banks are the largest taxpayers to the state budget. It pointed out that last year alone, every fourth zloty of CIT tax came from the banking sector, totalling PLN 13.5 billion (EUR 3.2 bln).
Banks paid a banking tax of almost PLN 6 billion (EUR 1.4 bln). They contribute an additional PLN 1.5 billion (EUR 352.8 mln) in PIT tax and almost PLN 3.5 billion (EUR 823 mln) to the state budget in dividends. Therefore, there is no other economic sector in Poland that supports the state to such an extent as the banking sector.
"The state assets minister - and let us remember that the banking sector is more than 50 percent controlled indirectly or directly by the State Treasury - clearly states that imposing a tax on excess profits on banks is a bad idea," the head of ZBP said.
"The Minister of Finance says outright that he sees how much the banking sector pays and clearly indicates that banks are the largest taxpayers in Poland," he added.
Polish banking lobby ZBP reported that the banking sector is responsible for servicing over 50 percent of the State Treasury's borrowing needs. It is the sector that helps the state most in servicing its public debt in the European Union. At present, there are more State Treasury debt securities in banks' assets than loans, which account for 33 percent.
"Hence, we consider the idea that the banking sector should contribute additional funds to the state budget when it needs capital to finance the economy, because it is the lifeblood of the economy, to be pure populism," the statement said.
"Especially when, in a situation of falling interest rates and greater availability of credit, banks can play an even greater role in financing businesses and the financial needs (including housing) of Poles," it added.
On Friday, the leader of ruling coalition party Polska 2050, Sejm Speaker Szymon Holownia, announced that a meeting would be held on Monday at which Prime Minister Donald Tusk would present a draft of his exposé to his coalition partners, and they would work on it together.
Speaking about programme issues, he said that, in his opinion, one of the proposals that could show people that the government is on their side is the introduction of a windfall tax, i.e. a tax on excess profits.
"Banks are already making a fortune with these interest rates and margins," Holownia said.
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