UK 'set to push ahead with banking tax'

7 June 2010

The UK remains likely to introduce a banking tax, despite opposition from fellow G20 member states halting the implementation of a global levy.

Countries such as Canada, China and Australia are against the idea of a worldwide tax on the banking sector, meaning that the idea was dropped from the G20's final statement from its meeting in South Korea over the weekend.

But according to aides to British chancellor George Osborne, the UK is still planning to introduce such a levy, with the proposal due to be outlined in the forthcoming Budget, reports the Financial Times.

It is believed that Britain will not be the only country to bring in such a measure, with many in the eurozone, as well as the US, due to follow suit.

In April, a report by the International Monetary Fund proposed that a flat-rate levy should be introduced on all banks, with a further tax brought in to apply to profits and remuneration.

The report said this would help foot the bill for any future bailouts.

By Asim Shah

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