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Lithuania may tax windfall bank profits, increase defense spending | – #Lithuania #tax #windfall #bank #profits #increase #defense #spending

VILNIUS, Feb 6 (Reuters) – Lithuania’s banks face a windfall if profits continue to rise this year amid rising interest rates tax could apply, the country’s central bank chief and finance minister said on Monday, adding that the proceeds would be used for defense. spending.

Central Bank Chairman Gediminas Simkus said at a press conference, “This is a critical situation, we are in an environment of high interest rates, so unexpected returns are visible.”

“If this continues in 2023, it is appropriate to look for a way to redistribute the windfall through fiscal decisions.

Banks in Lithuania in 2023 1 billion euro (1.08 billion dollars) can make a profit, which is three times higher than in recent years, said Finance Minister Gintare Skaiste, adding that the government should spend the additional revenues on defense.

Skaiste told journalists that “the war in Ukraine and the reaction of countries to it led to high liquidity and high interest rates. Occupation also leads to higher defense costs, hence the windfall tax if we give, the income will be used for defense.”

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According to him, the decision on whether banks should be taxed or not will be made in the next few months.

Russia its neighbor has so far set its defense spending for 2023 at 1.8 billion euros (1.9 billion dollars) or 2.52% of the gross domestic product.

Two groups belonging to Sweden, Lithuania bank owns more than 50% of its assets: Swedbank ( SWEDa.ST ), whose profits in 2022 are up 64% to 148 million euros, and SEB ( SEBa.ST ), whose profits are up 49% to 172 million euros.

British fintech firm Revolut, European Union and Europe It has the third-largest bank serving the Economic Region, with about one-fifth of its total assets, and Lithuanian residents make up less than 2% of its customer base.

Spokesmen for Swedbank, SEB and the Lithuanian Bankers Association could not immediately be reached for comment.

($1 = 0.9267 euros)

Reporting by Andrius Sytas in Vilnius, additions by Simon Johnson in Stockholm report; Edited by Terje Solsvik and Bernadette Baum

Our standards: Thomson Reuters Trust Principles.

2023-02-06 17:29:10
Source – reuters

Translation“24 HOURS”



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