All retail banks in Ireland to pay new charge to be introduced in Budget

Monday 14 October 2013 22.49
Foreign lenders as well as domestic banks to be hit with Government's new levy on  banks
Foreign lenders as well as domestic banks to be hit with Government's new levy on banks

Foreign lenders such as Ulster Bank, KBC Bank Ireland and Danske Bank will be hit with the Government’s new levy on banks.

It is expected that the charge will raise in the region of €150m per annum when it is announced in tomorrow’s Budget.

It is now expected to cover all retail banks in Ireland on the basis of their market share.

While the levy will hit the banks immediately, the Government is also going to change the tax treatment on future bank profits.

The lenders will have limits on how much losses they can offset against tax raised in a move which will help their balance sheets.

It is also expected the Government will raise the DIRT tax on savings to the same level of income tax.

That would see the current rate of 33% for higher earners increase to 41%.