Around 179 million euros paid by banks since 2020, plus compensatory interest, is at stake.
In June, the Constitutional Court declared the additional tax on banks unconstitutional, citing violations of tax equality and capacity principles.
The ruling deemed unconstitutional the regulations justifying the tax as compensation for VAT exemption on credit operations, defining the entities subject to this tax, and establishing its tax base.
The regulation concerning the tax calculation for the first semester of 2020 was also declared unconstitutional due to its retroactive nature.
The additional banking sector tax was introduced in 2020 by the PS Government (led by António Costa) amid the COVID-19 crisis to fund Social Security.
Despite strong opposition from the banking sector, which deemed it discriminatory, the tax persisted. This year’s State Budget projected the tax would generate 40.8 million euros for public coffers.
In June, when questioned in Luxembourg, the Finance Minister stated the Government was reviewing the decisions for compliance.
“The Government, like any Government, complies and will comply with court orders and decisions, in this case, the Constitutional Court regarding the so-called solidarity tax on banks. We are still analyzing the ruling, its implications, and the impact on tax returns paid by banks,” said Joaquim Miranda Sarmento.
Speaking at the Eurogroup meeting in Luxembourg, the official noted that “a portion of this tax has indeed been paid,” but acknowledged that “another part, being under appeal and litigation, is only in guarantee form.”
“We need to conduct a comprehensive analysis, but we will comply with the Constitutional Court’s decision,” he assured.
