(Reuters) – The Dutch banking sector fell sharply on the stock market on Friday after Dutch MPs gave the green light to an increase in the tax on banks to cover the financing of an increase in the minimum wage and childcare allowances in 2024 .
Dutch parliamentarians also validated the introduction of a tax on share buybacks by listed companies.
ING Groep lost 4.7% and ABN AMRO 3.5%, while Van Lanschot Kempen lost 0.9 in Amsterdam, where the flagship AEX index fell 0.31% at 10:41 GMT.
Dutch MPs on Thursday backed the introduction of a tax on share buybacks by listed companies and a higher tax on banks to finance minimum wage increases and childcare support in 2024 .
Mark Rutte, outgoing Dutch Prime Minister and leader of the Liberal Party (VVD), had advised against voting in favor of these measures, arguing that they risked pushing businesses to leave the country.
The share buyback tax is expected to raise around €1.2 billion, according to a coalition led by Labor and the Greens, while funds from the bank tax are expected to rise by 70% to around 850 million euros.
These measures are expected to cover around €2 billion in additional spending for minimum wage increases and family allowances, as part of the debate on amendments to the 2024 budget.
(Reporting Bart Meijer; Diana Mandiá, edited by Blandine Hénault)
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