Minister for Finance Jack Chambers is planning to extend the bank levy as part of Budget 2025.
The levy was first introduced in 2014 and has been extended on a number of occasions over the past decade.
The bank levy is calculated based on eligible deposits at the four institutions that received State assistance during the banking crisis. They are AIB, EBS, PTSB and Bank of Ireland. This year alone it is set to raise around €200 million.
As work intensifies ahead of the Budget on 1 October, Minister Chambers has examined the levy closely with officials in the Department of Finance and will soon make a recommendation to Government to extend it.
This is based on the view that banks in Ireland are highly profitable and benefiting from a stable economic position.
Therefore, the minister said, “it is entirely appropriate that banks continue to contribute back to the State.”
Minister Chambers believes the return generated by the levy will give scope for a substantial income tax package along with options to further reduce the tax burden for families and workers in Budget 2025.
The minister said many people are still struggling with the cost of living and providing additional support is a key focus for the upcoming Budget.
“There will be further consideration on the exact make up and composition of the extension of the levy and this will be a decision for Cabinet as part of Budget 2025, but I will be very clear in my recommendation to Government colleagues to extend the levy again,” Minister Chambers added.
Article Source – Chambers set to extend bank levy as part of Budget 2025 – RTE