VILNIUS, Nov. 18 (Xinhua) -- Two Lithuanian lawmakers addressed the European Central Bank (ECB), asking for an expert assessment of the planned tax on bank assets in the country, the Lithuanian parliament announced on Monday.
"Before making taxation decisions, we need to carefully consider all the circumstances. There is practically no competition in the banking sector in Lithuania, therefore new bank charges may be easily transferred to the clients of banks," Mykolas Majauskas, member of the parliamentary Committee on Budget and Finance, was quoted as saying in a statement released by the parliament.
According to the statement, the ECB has been addressed by Majauskas and Ingrida Simonyte, chairwoman of the parliamentary Committee on Audit.
The two lawmakers ask the ECB to assess the impact of the banks' tax proposal on interest rates, new lending, bank charges, banking sector concentration and the Lithuanian economy.
According to the lawmakers, the ECB has previously expressed its opinion on similar tax initiatives in Poland and Romania, and said that introduction of such taxes could have a considerable negative impact.
The Lithuanian government has in principle approved the proposal to tax the assets of banks and credit unions, alongside with the trade tax on major retail chains proposal. The government recommended to the parliament to organize consultations over both taxes.
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 (332 million U.S. dollars).
Back in October, the Lithuanian Banks' Association warned that the proposed tax on banking assets would make loans for households and businesses more expensive.
