Idea of Bank Taxes Supported by Alistair Darling
London(Shakespeare Finance): In the recent reports, the two new taxes proposed by International Monetary Fund is supported by the Chancellor Alistair Darling. These new taxes are reportedly designed for future bail-outs.
The reports are also indicating towards the IMF asking for ‘financial stability contribution’ which would be utilised in the form of a fiscal cost support from the future government to the sector.
The new taxes would be charged from the banks as well as the institutes on a flat rate but, would also get modified in the future. Here, more charges are expected to be imposed on the riskier institutes.
The tax is expected to be charged on the basis of total cost of financial institutions, profits, salaries and bonuses included in the business.
According to the statement given by Darling, the banks should offer their cash and service to the society they are operating in. Hence, the bailout assistance from banks and institutes can be expected at a higher level.
Further, analysing the point from financial point of view, the long term credit facilities like personal loans and short term facilities like payday loans are also expected to get a hit.