Governor Stefan Ingves with the new Swedish banknotes in his hand. Photo: All over press
the Riksbank supports the government’s aim to reduce the tax that the financial sector in Sweden has for the tax-exempt status. The riksbank considers, however, that it is difficult to get an overview of the potential effects of the proposals for financial taxes, also known as the bank tax, which the commission has put forward, according to the Riksbank in its consultation response on the proposal to introduce an additional tax which is calculated based on bank employees ‘ salaries.
“There may therefore be grounds for a possible implementation of the proposal is combined with a plan for follow-up and evaluation of its effects,” writes the Riksbank.
It also needs to be ensured that the Swedish financial supervisory authority to engage in supervision, is not impaired in the event of any relocation of financial activities abroad, arguing the Riksbank.
the Inquiry mentions a number of potential risks associated with the proposal, such as that the tax could accelerate the implementation of digital technology within the financial sector.
“This development has positive effects, but also contains risks,” notes the Riksbank.
In one of last year’s reports on financial stability pointed out, the Riksbank, increased the use of information technology and outsourcing makes the financial system more vulnerable, for example, to cyber attacks.
In finansskatteutredningen also note that the tax could have implications for banks ‘ cross-border activities, for example, that critical activities such as risk analysis outsourced to other countries.
“It cannot be excluded that this may lead to the possibility to conduct supervision over the financial activities that are important for Sweden, more difficult”, according to the Riksbank.
the Commission proposals are out for consultation. How the government may go ahead with the proposal is not known.
Even if the government’s intention to introduce a bank tax, it is not certain that they will choose the model as the study suggested. The government has so far been restrained to comment on how they look at the objections that have been put forward against the proposal from various stakeholders.