FINANCE MINISTER JACK Chambers is planning to extend the bank levy as part of Budget 2025.

The levy was first introduced in 2014 and has been extended on a number of occasions over the past decade.

The bank levy is calculated based on deposits held at the four institutions that received help from the State during the banking crisis, which include AIB, EBS, PTSB and Bank of Ireland.

Chambers said today that the banks are “highly profitable” and are benefiting from the stable and positive economic position Ireland is in currently.

“I think it is entirely appropriate that banks continue to make a contribution back to the State in this context. The return generated by the levy will provide me with additional scope on ensuring there is a substantial income tax package and options on further reducing the tax burden for families and workers as part of Budget 2025.

“I am acutely aware that many people are still struggling with the cost-of-living and providing additional support is a key focus for me and for government in the upcoming Budget,” he added. 

“I have been examining the bank levy closely with my officials in the Department of Finance and I will be making a recommendation to Government to further extend the bank levy.

“There will be further consideration on the exact make up and composition of the extension of the levy and this will be a decision for Cabinet as part of Budget 2025 but I will be very clear in my recommendation to Government colleagues to extend the levy again,” said the minister. 

The levy collects around €200 million per year. 

Sinn Féin has called for the bank levy revenue to be doubled to €400 million, with the party’s spokesperson Pearse Doherty stating this year that the bank’s profits are a result of interest rate hikes levied on customers. 

The government last year ruled out any move to introduce a windfall tax on bank profits, instead pointing to the existing levy that banks must pay. 

Italy announced a 40% windfall tax on “surplus profits” of banks generated by the rise in interest rates, with Spain, Hungary, the Czech Republic and Lithuania also indicating similar measures would be introduced.