Latvian Finance Ministry Seeks to Impose 20% Annual Bank Tax

Latvia may raise about €140 million ($153 million) in additional tax revenue next year under a proposal that would force banks to pay taxes annually, instead of when they pay out dividends.

The proposal is part of a package of potential tax changes ahead of 2024 budget talks and was chosen over a windfall tax on lenders’ profits, the Finance Ministry said Monday.

The Baltic country’s financial sector, which is dominated by Nordic lenders such as Swedbank AB and SEB AB, has seen profit rise as about 95% of housing and non-financial corporate loans have floating rates, boosting banks’ ...