Finance Ministry Official Says Bank Tax on Assets is Quarterly

Speaking at a conference organized by business news outlet Ziarul Financiar, Emilia Iordache, deputy general manager at the Ministry of Finance said the tax is not a fiscal one, is conditioned by money market interest rates, and would be levied on a quarterly basis.

It was previously unclear whether the levy would be annual or quarterly.

The government in December last year introduced a levy on banks' financial assets requiring banks to pay a progressive tax of 0.1%-0.5% if money market rates exceed 2%.

Iordache said the tax is not of a fiscal nature and the principle of not taxing the same asset multiple times during the course of a year does not apply. She added there are talks to amend the tax but the government has no intention of scrapping it altogether.

Central bank governor Mugur Isarescu said earlier this week the bank tax constitutes an attack on the central bank's independence, as it hinders its monetary policy.

Romania's committee for macro-prudential supervision is currently working to separate the bank tax from the level of interbank interest rates.

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