Within days of the G20 shelving any commitment to introducing an international banking levy the EU finance ministers restated their intention to introducing such a tax throughout Europe. The UK Government has announced that they will be introducing a bank tax although no details have been forthcoming to date.
The UK may decide to introduce the European tax although there is currently no EU consensus on the type of tax which should be introduced or to the use to which the money raised should be put. Alternatively the UK may enact its own tax.
The EU's proposals
The EU proposes to impose a levy on banks calculated by reference to a bank's liabilities the proceeds of which are deposited with 'resolution funds'. The aim of these funds is that whenever a future bank crisis occurs the money deposited within them will...
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