The Web Tycoon's blog » United Kingdom

The United Kingdom, Germany and France will charge a new tax to the banks

The-Web-Tycoon — Sat, 26 Jun 2010 02:21:27 +0000

George Osborne, British ministry of Economy, has just announced in the British parliament a deal that the United Kingdom, Germany, and France will establish from January of 2011 a tax tat will penalize banks operating in these three European countries.

With this measure, the British government hopes to obtain 2000 millions of pounds from the entities placed in the United Kingdom and local branches from stranger groups that operate in the country. France and Germany will confirm early if they take a similar measure, according Osborne.

This tax will be similar as the one that the government of Barack Obama announced the past year.

Will charge the assets of banks that aren’t covered neither by capital nor deposits from savers or long therm debt. In other words, will be a percentage on short therm financiation in the markets, considered more risky.

The most affected entities by this kind of tax will be the ones whose main activity is the investment banking.

Osborne considers that is “just” that banks pay this tax to contribute to the reduction of fiscal deficit, after causing the crisis of last years.

The announcement was made during the presentation of new budgets in the United Kingdom. Furthermore, Osborne said that the VAT will grow from 17.5% to 20% next year.

With these taxes and expenditure reduction, the united Kingdom expects to reduce almost all his public deficit between 2011 and 2016.

A new tax for the banks; The United Kingdom will try to cut deficit dramatically

The-Web-Tycoon — Sun, 23 May 2010 17:20:19 +0000

he new British Government, proposed to charge financial the system with a new tax up to 8000 millions of pounds, to contain the growth of national debt.

According The Independent on Sunday, this figure, is three times higher than the offered in a beginning by the finance ministry , George Osborne, and is a indicative that The United Kingdom needs drastic measures in front of the serious problem with the national debt.

According the newspaper, The size of the new tax, points that the government is planning announce in his first budget, next June 22th, an increase of the VAT from the current 17.5% to a 19 or 20%.

Meanwhile, other newspaper, “The Daily Telegraph”, affirms have seen the draft of the so called “speech of the Queen”, program of the new Government, that will read the Queen in the aperture of the new parliament, this Tuesday , and that declares as a first priority “reduce deficit and resume Economic Growth”

“My Government will try to build a new strong and just society reforming public services and fomenting individual and social responsibility”, will say the Queen in this speech.

The conservatives, declared his intention to delete a lot of the hundreds of assessment organisms, regional development agencies, and other entities created by previous laborist governments, and that meanwhile, are having a maintenance costs of more than 90.000 millions of pounds.