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Financials

Sweden proposes new 'risk tax' for banks

STOCKHOLM, Sept 17 (Reuters) - Sweden’s government on Thursday proposed a new “risk tax” for major banks to bolster public coffers should there ever be a repeat of the 2008 financial crisis.

The tax would come into effect in 2022 and is supported by Sweden’s governing Social Democrat and Green coalition, as well as the opposition Center Party and Liberals.

“The purpose of the new tax is to strengthen public finances and create space to cover the costs that a crisis in the financial system risks entailing,” the finance ministry said in a statement.

The Social Democrats have been considering a bank tax for years, but have withdrawn several proposals after criticism they have been poorly designed.

The proposal is expected to increase tax revenues by approximately 5 billion Swedish crowns ($568 million) in 2022, the statement said.

$1 = 8.8026 Swedish crowns Reporting by Colm Fulton; Editing by Mark Potter

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