According to a British Bankers Association research, Britain’s banks will pay as much as £40 billion in extra taxes as Chancellor George Osborne increases the bank levies. Banks are to pay about £39.4 billion in levies between 2010-2011 and 2020-2021.
These exclude business rates and corporation taxes. The BBA is angered by the additional levy and has called on the UK government to review UK bank taxes to ensure the industry’s competitiveness.
A new 8% surcharge on profits for the banking industry will sit for the next six years and will take effect from January 1 the following year. This would take £2 billion worth of profits from banks and the industry.
The BBA said it was the fifth new tax on banks the Chancellor had introduced in many years. BBA Chief Executive Anthony Browne said banks expect fairness from the government and not singled out.
Aside from the huge surcharge profit taxes, The £26 billion in PPI is sure to leave a dent. An additional £10 billion from the industry comes from fines imposed by local and international regulators for their involvement in rigging foreign exchange rates.