Ireland Finance Minister Jack Chambers is considering to extend the bank levy as part of the upcoming Budget 2025, RTE reported.
The levy, which was first introduced in 2014, has been extended several times over the past decade and is set to raise around €200 million this year alone.
The bank levy is calculated based on eligible deposits at the four financial institutions that received State assistance during the banking crisis—AIB, EBS, PTSB, and Bank of Ireland.
As preparations for the Budget on October 1 intensify, Minister Chambers has closely reviewed the levy with officials in the Department of Finance and will soon recommend its extension to the Government.
Minister Chambers stated that “it is entirely appropriate that banks continue to contribute back to the State” given that the banks are currently highly profitable and are benefiting from a stable economic environment.
The Minister believes that the revenue generated from the levy will allow for a significant income tax package and provide opportunities to reduce the tax burden on families and workers in Budget 2025.
Addressing the ongoing cost-of-living challenges faced by many, Chambers emphasised that providing additional support is a key focus for the upcoming Budget.