Lithuania: Banks due to pay first tranche of windfall profit tax

Lithuanian commercial banks and other credit institutions are due to pay a total of over EUR 50mn in temporary solidarity tax by 31 August 2023, BNS reports. Banks will have to pay the full tax for 2023 by 15 June 2024. The tax is calculated based on net interest income that exceeds the average income for the past four years by more than 50%. The government expects to raise a total of around EUR 400mn over two years through the tax. The government will use the revenue for defence and transport infrastructure spending.