Bank tax tolerable burden, co-operatives say

The scale of the bank tax, considering the performance and the business model of the savings co-operatives, is tolerable and well-proportioned, according to a statement by the National Federation of Savings Co-operatives (OTSZ).

“We cannot say exactly what amount the co-operatives will have to pay, since the rating links to the modified total balance sheet and will define the tax base. However, according to our pre-calculation, it will be around HUF 2 billion, which is a bearable burden,” Antal Varga, managing director of OTSZ commented.  

The members of OTSZ form a 1,600-branch network with a national coverage that ensures financial services for small settlements, too. The operational costs of the small branches, however, are large: there are only 50 commercial bank outlets outside the OTSZ network in places with less than 4,000 residents.

Furthermore, the operational model, the business policies and the performance of co-operatives are different from commercial banks'. Therefore OTSZ considers the amount of tax well-proportioned.

The government will levy the bank tax on last year’s modified balance sheet total of the financial institutions, with a 0.15% tax for a tax base under HUF 50 billion and 0.5% above that. (BBJ)