IMF proposes radical new taxes for banks

http://news.bbc.co.uk/2/hi/business/8633455.stm

Banks and other financial institutions face paying two new taxes to fund future bail-outs, the BBC has learned.

Business editor Robert Peston said the global proposals by the International Monetary Fund (IMF) were “more radical” than most had anticipated.

All institutions would pay a bank levy – initially at a flat-rate – and also face a further tax on profits and pay.

The measures are designed to make banks pay for the costs of future financial and economic rescue packages.

The IMF documents were made available to governments of the G20 group of nations on Tuesday afternoon and seen by the BBC soon afterwards. The plans will be discussed by finance ministers this weekend.

“The proposals are likely to horrify banks, especially the proposed tax on pay,” our business editor said.

“They will also be politically explosive both domestically and internationally.”

Insurers, hedge funds and other financial institutions must also pay the taxes, the IMF argues, despite them being less implicated in the recent crisis.

If they were not included, activities currently carried out by banks would be reclassified as, for example, insurance or hedge-fund services to escape the levies.

While the general levy, or “financial stability contribution”, would initially be at a flat rate, this would eventually be refined so that riskier businesses paid more.

British chancellor Alistair Darling said the IMF’s proposals were “important” and should be welcomed.

“The recognition that banks should make a contribution to the society in which they operate is right,” he said.

———-

not sure what to think here..it appears like the IMF is working for us against the banks..but thats not usually the way they operate so is their another force here?

401

Advertisement

~ by seeker401 on April 23, 2010.