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IMF proposes two new bank taxes-report

LONDON, April 20 (Reuters) - The International Monetary Fund has proposed two new taxes on banks to fund the cost of any future bailouts, according to a leaked document published on the BBC’s web site on Tuesday.

A UK government source confirmed the document was genuine.

Under the proposals, banks could have to make a “Financial Stability Contribution” which would help pay for future bailouts either by accumulating in a fund or contributing to government budgets.

“The FSC would be paid by all financial institutions, with the levy rate initially flat, but refined over time to reflect institutions’ riskiness and contributions to systemic risk,” he document said.

In addition, further revenues desired from the financial sector could be raised by a “Financial Activities Tax” levied on the sum of the profits and remuneration of financial institutions, and paid to general revenue.

The IMF said international cooperation was important and that the initial proposals would be refined in time for a final report to the G20 leaders’ summit in June.

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