Iceland’s Foreign Minister Wants More Taxes on Island’s Lenders

Iceland should impose additional taxes on the country’s lenders to help cut Treasury debt by 20 percent within five years, Foreign Minister Ossur Skarphedinsson said.

Banks should pay 15 billion kronur ($128 million) in an annual tax on what he called “super profits” over the next five years, Skarphedinsson wrote on news website today. Iceland’s banks earned 260 billion kronur since 2008, including 66 billion kronur last year, according to the official.

Skarphedinsson also proposed imposing a special 0.1285 percent tax on the debt of financial companies under administration to gain 13 billion kronur annually.

By imposing these taxes, Iceland’s Treasury could obtain additional revenue of 140 billion kronur, he said. Skarphedinsson didn’t immediately respond to a call from Bloomberg News to his mobile phone.

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