VILNIUS, Nov. 13 (Xinhua) -- The Lithuanian government backed in principal a proposal of imposing a new tax on bank and credit union assets, local media reported on Wednesday.
It also recommended that the parliament should organize consultations on the effects the tax would have, news agency Elta reported.
Deputy Chairwoman of the Bank of Lithuania Asta Kuniyoshi told a sitting of the cabinet on Wednesday that the European Central Bank would also have to be consulted.
Finance Minister Vilius Sapoka noted that the parliamentary legal department had already addressed the parliament about this, according to the report.
Proposed by the ruling Lithuanian Farmers and Greens Union and now debated in the parliament, the planned taxes are expected to generate around 50 million to 60 million euros (55 million U.S. dollars to 66 million U.S. dollars) in additional budget revenue annually, news agency BNS reported.
The Lithuanian Banks' Association said that the tax may run counter to the Constitution, making banking services more expensive.
If the bill passes, a financial market participant's assets will be taxed by a monthly tariff of 0.03 percent if its assets exceed 300 million euros, according to ELTA. Enditem
