Ljubljana, 18 December (STA) - The Constitutional Court has ruled that the temporary tax on banks' total assets designed to finance reconstruction after the devastating August 2023 floods is not at odds with the Constitution.
The 0.2% bank assets tax, in force between 2024 and 2028, was challenged by Addiko Bank and Banka Sparkasse, which argued it violated the principle of equality before the law and was inconsistent with the right to private property.
The top court disagreed, saying in its decision, published on Wednesday that the position of banks is unique, as their activities cannot be narrowly understood as purely entrepreneurial operations driven solely by private interests.
Instead, public interest considerations, such as ensuring a well-functioning and developed financial system, must also be taken into account. Thus, the court rejected the argument that all business entities operate solely for profit and that the legislature should have taxed the financial assets of all enterprises in a comparable manner.
The court also invoked its earlier decision on the tax on banks' assets under the 1998 Act on the Special Tax on Banks' Total Assets, which was in effect until 2004. In that ruling, it recognised that specific conditions apply to the establishment and operation of banks, whose functions extend beyond entrepreneurial activity to include executing broader economic, financial, and monetary policy objectives for the country.
The court further dismissed claims that the temporary tax creates unequal treatment among banks. It stated that the contested provisions apply equally to all banks, and the argument that varying effects might arise due to the tax being levied on total assets does not substantiate claims of unequal treatment.
The ruling was supported by six Constitutional Court judges - Matej Accetto, Rok Čeferin, Rajko Knez, Neža Kogovšek Šalamon, Špelca Mežnar, and Katja Šugman Stubbs - while two judges, Rok Svetlič and Marko Šorli, opposed the decision.
