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)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.