Romanian Govt.'s talk on taxing banks drags down lenders' shares

The shares of Banca Transilvania (BVB: TLV) and BRD-SocGen (BVB: BRD) plunged by 2.4% and 2.7%, respectively, on September 5 on the Bucharest Stock Exchange, after finance minister Marcel Bolos mentioned plans to levy a special tax "such as in Hungary or Italy" on the windfall profit of the banks.

"It [the supplementary tax on banks] is in the package of fiscal adjustments and is inspired from these models of the EU member states. The announcement will be made in due course," minister Bolos told Digi24.

He also mentioned a 1% turnover tax "for the multinational companies that report an insignificant profit."

"There is this discussion, it is seen as a minimum profit tax, although we may face criticism because of those in the loss area. But the turnover tax has the role of establishing a minimal profit tax," Bolos said.

(Photo source: Inquam Photos/George Calin)