The tax rate will be 0.0366% per month (almost 0.44% per year) and this is, in the case of banks, a higher value than originally proposed – initially it was to be 0.0325% per month.

In the course of parliamentary work, the tax rate for insurance companies was lowered. We remind you that according to the provisions of the bill, insurers were to pay 0.05% per month on the sum of their assets.

## Bank responses

In these banks, margins increased by 0.14 pp to 0.50 pp depending on the loan amount and the amount of own contribution. Depending on the scale of the increases, customers experienced this increase to varying degrees. For example, a person taking a loan of 300,000 USD for 30 years due to the increase of the margin by 0.40 pp will pay an installment higher by about USD 80.

However, we can assume that in some banks the increases are not over and in the coming weeks margins may increase. The increases will also be caused by other costs that banks must incur in the near future, i.e. payments to the Borrower Support Fund or payments to the Bank Guarantee Fund.

## How much tax must the bank pay?

The bank tax will be imposed on the assets of the financial institution, and in the case of banks, the vast majority of assets are granted loans. How much tax will the bank have to pay on a single loan during its entire repayment period? The table below presents changes in the balance of debt and the amount of tax to be paid on a monthly basis.

Assumptions – a loan for 25 years, loan amount 300,000, interest rate 4.00%, repayment in equal installments.

For the loan from the example above, the bank will be required to pay almost USD 20,000 for 25 years. USD tax. If the total cost of tax were to be transferred to the borrower, then the amount of interest paid would have to be higher by almost 20 thousand. Golden.

This will happen if the interest rate increases by 0.40 pp. Then the amount of interest paid will be USD 195 thousand and will allow the total cost of the bank tax to be transferred to the borrower.