The record of bank profits raises discussions on the extension of this tax

Whoever works is earned. True, there is who does not accept such a bank philosophy.

« The state has accepted very strict financial requirements, people are forced to bring money to banks, they cannot withdraw their money. There are great controls.

Last year, Lithuanian banks earned a record amount of more than a billion euros. This is another 3 percent. more than in previous years.

« It was quite a good year due to the fact that crediting grew impressively – business and residents – probably the fastest in the entire euro area.

Revolut overtook Swedbank last year and became the largest participant in the market in Lithuania. However, the most names of the most earning commercial banks are the same names. Swedbank estimates that their profits are the same as in previous years – $ 360 million. euros. SEB Bank has earned 8 percent and Luminor has earned almost 4 percent more than before.

« A total of EUR 700 million is paid, of which EUR 400 million is a corporate tax and a solidarity fee of about EUR 300 million, » said E. Čipkutė.

Last year, the Bank of Lithuania can boast of results.

« The profit of the Bank of Lithuania in 2024 is 144 million and the profit contribution will be record high – EUR 130 million to the state budget of the Republic of Lithuania, » stressed Gediminas Šimkus, Chairman of the Board of the Bank of Lithuania.

Photo by D. Labutis / ELTA

Of these, 116 million. will travel to the Defense Fund. As the profit increased 6 times compared to 2023, the Seimas specially exchanged laws to contribute more to the defense. Solidarity contribution to commercial banks was introduced in 2023.

« We warned that this so -called banking solidarity contribution can gradually be tempted to make it permanent, » said Eugenijus Gentvilas, a member of the Seimas (LRLS).

This is not the first to resist such temptations.

« Seeing what the geopolitical situation is, the change, seeing the American situation and seeing the Chinese situation, I would suggest extending the bank solidarity fee, » the Nemunas Dawn leader explained.

The conservatives who introduced the tax initially promised that no one would extend it, as the interest would simply not have to calculate it as the interest decreased, but took and extended in June last year.

« When we extended this project, we said it was temporary, more focused on high interest, the situation seems to change, » said Mindaugas Lingė, a Member of the Seimas (TS-LKD).

« Obviously, interest rates fell twice, » said G. Šimkus.

Solidarity fee is introduced with a sudden increase in interest. The banks then received a large number of revenue due to the circumstances.

« The question of what is the subject of taxation? Is there any income at all, or is that unusual, unexpected income anyway? In my eyes, there is no, in principle, that it can hardly be called a solidarity contribution, » said the chairman of the Board of the Bank of Lithuania.

R. Žemaitaitis does not hide that the tax would be called the same, but it would be different. The banks are most interested in investing more in defense.

« This protects their property, because if the banks do not protect assets and have their assets destroyed in the event of a military conflict, the company will go bankrupt and no one will pay for losses, » said Žemaitaitis.

Ž. Photo by Gedvila / ELTA

« Banks’ profits, which are not due to random reasons for inflation, but because of good banking, qualified banking profits for good work, banks are punished by the hands of the state, » Gentvilas explained.

« Solidarity fee is discriminating against one sector, » said E. Čipkutė.

The Dawn proposes to extend the fee by 2028. However, the support coalition does not seem to get.

« It would be a virtue to break the state’s promise to extend it for an indefinite period, » said Prime Minister Gintautas Paluckas.

There are fears that increased taxes will scare the ones here and certainly will not attract new banks.

« After two Šimonytė’s taxation, SEB Bank reacted, which moved its headquarters to Tallinn from Vilnius to Tallinn in the Baltic States, » Gentvilas said.

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« We have no normal competition for banking, but there is a high profit because there is a market as they say, » said Algirdas Sys, Chairman of the Budget and Finance Committee.

Banks will supposedly contribute enough to pay taxes. It is much bigger than others.

« Banks pay a non -15 % income tax rate, they pay a 20 % rate, which is the only sector that pays this higher income tax rate, » Linge said.

« Let’s call it that this is a bank robbery fee offered by Žemaitaitis, » Gentvilas said.

Last year, banks paid $ 230 million. Solidarity contribution. It is estimated that the total amount paid at the end of this year will be more than half a billion euros.