Banking Federation urges delay in savings tax law

The European Banking Federation urged EU finance ministers to delay implementation of the proposed law on the taxation of savings until January 1, 2005, at the earliest.

Ministers will discuss the faught issue at their meeting tomorrow, with a decision due by Dec 31 and implementation by January 1, 2004.

The federation said each member states will need time to transpose the directive into national law and to adopt supplementary regulations.

Most EU countries are unlikely to pass the necessary laws before the end of 2003, it said.

The federation said banks will need at least 12 months to adapt to a directive which is complex and difficult to apply.

They can only commence this process when they know the details of the national law, probably the end of next year.