Italy is just one of the last European countries to introduce a tax on bank profits to help mortgage lenders, writes La Stampa.

From Spain to Lithuania, from the Czech Republic to Sweden, there are many governments that have decided to take advantage of the profit boom caused by the ECB’s interest rate hike to raise money for struggling families and businesses.

And even where the tax has not been introduced, public debate on the issue has been strong, as it has been in Great Britain or France, where, however, there are other measures to protect mortgage holders and account holders.

SPAIN – the country wants to collect 3 billion euros by 2024 from the bank tax

The government’s goal is to raise €3 billion by 2024 from the bank tax approved last year. And to achieve that goal, it applied a 4.8% tax on net interest and commission income of more than €800 million.

The first installment was paid in February, and lenders focused on the domestic market were particularly affected. CaixaBank, Spain’s biggest lender, said the tax was 373 million euros, or 44 percent, of the 855 million euros in net profit it recorded in the first quarter.

The percentage was higher for Sabadell, which owns UK bank TSB but has the most assets in Spain. Expenses amounted to 157 million euros, which is equivalent to 77% of the profit in the first quarter. Spain’s two largest banks by market capitalization, Santander and BBVA, which have much larger international operations, were less affected.

FRANCE – Companies with more than 5,000 employees must share more of their “exceptionally high” profits with employees

Emmanuel Macron said companies with more than 5,000 employees should share more of their “exceptionally high” profits with employees instead of resorting to a buyback process. However, the president ruled out the possibility of introducing a tax on additional income.

However, it should be noted that French banks are subject to the anti-usury law, which limits the pace of quarterly growth in the cost of loans. In addition, France has a regulated savings program that accounts for just under 20% of bank deposits, with inflation-linked returns that adjust faster than lending rates.

GREAT BRITAIN – since 2011 levies tax on global balance sheet assets of banks

London has not introduced a bank capital gains tax, but since 2011 has levied a tax on the global balance sheet assets of British institutions and those linked to the operations of foreign banks in the UK.

GERMANY – public debate on the possibility of taxing additional profits of banks

German banks’ net interest income is up 50-70% compared to pre-Covid-19 lows.

The jump sparked widespread public debate over the possibility of taxing excess profits, but Finance Minister Christian Lindner ruled out intervention.

CZECH REPUBLIC – 60% tax on bank profits exceeding 120% of average annual turnover between 2018 and 2021

In November, the lower house of the Czech parliament approved a 60% tax on bank profits exceeding 120% of average annual turnover between 2018 and 2021. The aim is to raise around 3.5 billion euros to finance aid for households and businesses affected by the increase in the price of electricity and gas.

HUNGARY – The Hungarian government has changed taxes on excess profits in key sectors of the economy

In a ruling published in June, the Hungarian government amended taxes on excess profits in key sectors of the economy, saying banks could reduce their burden by up to 50% in 2024 if they increased their purchases of domestic government bonds. The executive also introduced a new “social tax” of 13% on certain types of investments, including interest income on bank deposits.

LITHUANIA – Tax is 60% on part of net interest income, which is 50% higher than the average of the last four years

In May, the Lithuanian parliament approved a tax on net interest income of the banking sector for 2023 and 2024.

The tax is 60% of the portion of net interest income, which is 50% higher than the average of the last four years.

An estimated 410 million euros have already been raised, and this amount will go towards strengthening the armed forces.

The material was made with the support of the Rador agency