Italy shocks banks with 40% windfall tax for 2023 | Reuters
Italy shocks banks with 40% windfall tax for 2023 | Reuters
www.reuters.com
Italy shocks banks with 40% windfall tax for 2023
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This is the best summary I could come up with:
ROME, Aug 8 (Reuters) - Italy dealt a surprise blow to its banks and sent shockwaves across the sector in Europe by setting a one-off 40% tax on profits reaped from higher interest rates, after reprimanding lenders for failing to reward deposits.
Sharply higher official interest rates have yielded record profits for banks, as the cost of loans soared while lenders held off paying more on deposits.
Since then, however, bumper first-half results from banks brought the issue back into focus and prompted the government to act on the eve of the summer political shutdown.
"One has only to look at banks' first-half profits ... to realise that we are not talking about a few millions, but ... of billions," Deputy Prime Minister Matteo Salvini told a news conference in Rome late on Monday.
All main Italian lenders reported much stronger than expected results for the first six months and upgraded their profit outlook thanks to higher rates.
Since rates rose, they have cut current account costs but have refused to reward cash held there saying that money is for day-by-day use and not an investment.
I'm a bot and I'm open source!
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Credit where credit is due -- nice job Italy. I hope other countries follow suit (but most of them are owned by bankers, so).
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How do we get this to be a talking point here in Canada? I don't have the numbers but I'm sure banks here are doing the same thing
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Our gov is still trying to be okay with girls dating girls and people fixing their gender expression. One of our parties gleefully supported dissent against a not-them government no matter how many Canadians were permanently injured or killed from their irresponsible grandstanding.
We need to solve these issues. Only then can we work on the rest.
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The type of people who would make these changes are not the ones currently interested in running for election. Some one new would need to run but I'm not sure how you'd trust one person's empty promise over anothers.
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Oh, so next year the banks will invest their profit or try to hide it in any way possible, to not lose 40%
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Good? That's sorta the point isn't it. If they invest it back into their business it's no longer profit.
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Now do it in Australia
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I will remind you that Italy has a CONSERVATIVE GOVERNMENT. I wish Cons would follow their example. I wish our LIBERAL government would have half the brains to do this. We need to do this with our banks, grocery chains, airlines and oil companies.
IMO the term 'conservative' is somewhat fluid when the topic is other countries. For instance, Canadian/American conservatives/republicans (respectively) wouldn't even think of implementing a tax like that because in many ways they are the bankers.
It's not so much a conservative government. It's a populist government and as such they might do things that are popular with people.