Levy on banks of €150 million a year until 2016

Domestic banks will pay the levy totaling €150 million a year for the next three years with each bank to pay based on interest on thier deposits.

THE GOVERNMENT HAS confirmed that domestic banks will be subject to a levy from next year until 2016.

Minister for Finance Michael Noonan said that the levy would raise a total of €150 million from next year for the next three years.

Noonan said that levy will will be on the same basis as the one that yielded over €100 million each year from 2003 to 2005.

In his budget speech this afternoon, Noonan did not provide details on the contribution from each bank but said that the individual levies will be will be broadly based on the amount of tax paid on deposit interest in 2011.

Similar levies are in place in other EU members according to Noonan who says that full details will be made available in the upcoming Finance Bill.

Read: LIVEBLOG: Budget 2014 as it happens >

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