Italy's windfall tax on banks can be improved on, economy minister says (updated)
03/09/2023 14:11
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Announcement of the draft proposal came as a surprise
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Business chiefs are unhappy with the new levy - poll
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Everyone will appreciate the final version - econ min
(Adds quotes, background)
By Giselda Vagnoni and Giancarlo Navach
CERNOBBIO, Italy, Sept 3 (Reuters) - Italy's new tax on
bank profits can be improved on, economy minister Giancarlo
Giorgetti said on Sunday, denying that the new levy was unjust.
"It may be that the tax is inappropriate, it can certainly
be improved upon ... but I do not accept that it is considered
an unfair tax," Giorgetti said at The European House -
Ambrosetti economic forum.
Last month, Italy's government dealt a surprise blow to the
country's banks by imposing a one-off 40% tax on lenders'
profits resulting from higher interest rates, after reprimanding
lenders for failing to reward deposits.
Bank shares tumbled before the economy ministry clarified
that the new tax would amount to no more than 0.1% of their
total assets.
About 33% of the attendees polled by the forum organizers
were "very negative" on the measure, and two-thirds were overall
negative on it.
Giorgetti, a member of the League party, countered this view
saying that it was a fair tax and the state had given a lot in
the way of guarantees to the banking system.
However, the minister apologised for the clumsy handling of
the draft proposal, announced as a surprise at a news conference
late on a Monday in August by the deputy prime minister.
"I can assure you that I take full responsibility for
communication errors, but in the end the final version will be
something that everyone can appreciate," Giorgetti said.
The co-ruling Forza Italia party wants to exclude returns on
government bonds from the new levy, its leader Antonio Tajani
confirmed in Cernobbio, so that it does not affect the future
auctions of government bonds.
Forza Italia is also seeking an exemption for small banks
and wants a guarantee the levy will not be extended beyond 2023.
Giorgetti did not comment on his government ally's proposals
on the bank tax.
He also gave no indications as to when Monte dei Paschi di
Siena BMPS.MI bank was going to be privatised, despite
Tajani's call for swift action.
"We will solve (it) calmly but without letting anyone
dictate the timings as far as the banking system is concerned,"
Giorgetti said.
(Reporting by Giselda Vagnoni and Giancarlo Navach; Additional
reporting by Giancarlo Navach; Editing by Hugh Lawson and David
Evans)
((giselda.vagnoni@thomsonreuters.com; +39 06 85224210;))