By recommending the abandonment of the idea of taxing banks, I am not protecting banks, but I want to protect the country from politicians and political opportunists who lack the strength to rise above narrow interests and work for the common good of citizens, commented the governor of the HNB, Željko Rohatinski, on accusations from individuals that he is the main culprit for the government’s abandonment of taxing banks.
He reiterated that such a move would not be good for the entire economy. By introducing such a tax, banks would transfer the cost to clients, the governor repeats his stance, meaning that interest rates would certainly increase. He also denies interpretations from individuals that a tax rate of 0.3 percent would not have a significant effect on the operations of banks. It would, he says, because it would take a quarter of their profit, considering that their return on assets is 1.1 percent. – Therefore, I strive to protect the principle of fair taxation depending on the strength that the taxpayer has. And highlighting banks as the most profitable activity is not accurate, as there are those who are much more profitable, and whose taxation would not have negative consequences for the economy. Furthermore, the introduction of a tax is illogical, as it does not take into account the results of banks’ operations, given that there are those that operate at a loss. Taxing them would increase their losses. After all, banks finance the state with their resources – says the governor. (www.vecernji.hr)
