Lithuanian banks and credit institutions paid around 256 million euros in temporary solidarity levy for 2023, the Bank of Lithuania said on Friday.
“Despite the economic slowdown, the past year was financially successful for the banking sector, as we had forecast. Banks allocated part of their profits to the solidarity levy that is being used for public purposes,” Simonas Krėpšta, a board member at the Bank of Lithuania, said in a statement.
The central bank estimates that around 190 million euros in solidarity tax could be collected in 2024.
The government introduced the tax in response to windfall profits enjoyed by the banks in Lithuania thanks to the interest rate hikes by the European Central Bank. The proceeds are to be used for defence infrastructure.
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