Dutch lenders fall after lawmakers back profits levy

Shares in Dutch banks fell on Friday after legislators voted in favour of higher taxes for lenders.

In a vote late on Thursday, the Dutch parliament’s lower house backed a 70% increase in the country’s bank levy, which is expected to bring in around €850m a year. It also voted in favour of a new tax on share buybacks by listed company, which is forecast to bring in around €1.2bn.

The taxes have been announced in response to the higher cost of living. Income from them will be used to fund an increase in minimum wage and childcare support.

As at 1300 BST, shares in ING Groep were down 5%, while ABN Amro were off 4%.

Last month Italy announced a one-off 40% windfall tax on domestic banks, which have seen profits surge on the back of rapidly rising interest rates. The Italian government said the increased tax receipts wold be used to support mortgage holders and cut taxes.

Italian lenders also fell sharply following the announcement.