In the meeting of the Finance Standing Committee held on March 7, 2010, Minister of Finance Mr. De Jager indicated that he wishes to implement a ‘bank levy’ as of 2012, whereby banks will pay upfront contributions in order to finance the Deposit Guarantee Scheme. However, for the time being there will be no separate ‘bank tax’.
De Jager distinguished between the following two kinds of bank taxation:
1. Bank levy
The proceeds of this levy will be used for the advance financing of the Deposit Guarantee Scheme (DGS). Under the current system financially sound banks are called upon to provide support after a Dutch bank has collapsed, as was the case with DSB last year. De Jager is considering implementing the advance financing of the DGS as from 2012, whereby banks will contribute into a special fund which in turn covers the risk of the DGS. De Jager expects to be able to present a bill to the Lower House at the end of this year, which means the collection of the bank levy can start in the course of 2012.
2. Bank tax
The implementation of the bank tax will take longer to realize and will only take effect once a number of additional requirements have been met. A separate bank tax should not place Dutch banks in an unfair position internationally, nor should it lead to an additional administrative burden or decrease the credit provided to citizens and companies. Government finance ministers had made this position clear in earlier parliamentary sessions.
Belgium has already implemented a bank levy
Contrary to what was written in the Dutch press, the Netherlands will not be the first EU country to implement a levy on financial institutions: according to the Minister two Member States have already implemented this levy. For example, Belgian financial institutions participating in the ‘Protection fund for deposits and financial instruments’ have been paying annual contributions as from 2010.