Dutch banks face stock drop as parliament votes for increased bank tax

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Dutch banks face stock drop as parliament votes for increased bank tax
Credit: © Reuters.

In a recent vote echoing fiscal measures previously seen in Italy, the Dutch lower house of parliament has approved an increase in the bank tax, a move that has had a significant impact on the stock values of Dutch banks ABN Amro NV and ING Groep (AS: INGA ) NV. This decision, taken today, is aimed at providing financial assistance to lower-income households.

The immediate aftermath of the vote saw the shares of ING Groep NV fall by 5.5%, settling at €12.43, while ABN Amro NV experienced a drop of 4.6% to €13.02, as recorded at 10:26 a.m. in Amsterdam.

This legislative proposal, if approved by the senate, has the potential to generate an additional €350 million in revenue. This follows another parliamentary decision to implement a tax on share buybacks which is projected to add €1.2 billion to the budget.

Earlier this year, Italy introduced a similar initiative when Prime Minister Giorgia Meloni's cabinet sanctioned an unexpected tax on banks' "extra profits" for the current year. This move has evidently influenced fiscal measures in other European countries, as seen with the latest developments in the Dutch parliament.

The report was compiled with input from Thyagaraju Adinarayan and is subject to further updates as more information becomes available.

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