The proceeds from the proposed tax would fund social, educational, and environmental projects in Estonia, while the tax, dubbed a solidarity tax, would have been imposed for a two-year period.

A majority (i.e., 51 votes or more in favor) would have been needed for the resolution to pass.

The Draft Resolution of the Riigikogu, "Making a proposal to the Government of the Republic on the establishment of a temporary solidarity tax for the banking sector" (535 OE), was submitted by the Center Party's parliamentary faction.
MPs debating the resolution at the Riigikogu on Tuesday included Andre Hanimägi (SDE), Maria Jufereva-Skuratovski (Reform), Igor Taro (Eesti 200), and Lauri Laats (Center).

As reported by ERR News, in 2024, banking profits totaled over €1 billion, surpassing even 2023's €940 million, with fourth-quarter profits reaching €297 million.

However, profitability last year dropped due to lower market interest rates, with interest income falling by €11 million and interest expenses rising by €26 million. At the same time, a major end-of-year dividend withdrawal boosted banking profits, resulting in an adjusted fourth-quarter profit of €169 million.

The largest bank in Estonia, Swedbank, reported a 2024 net profit of €358 million, a €28 million fall from 2023's figure, driven by a €45 million revenue drop. This was mainly due to lower interest income and a €44 million fall in net interest income from higher deposit rates and lower loan margins, the bank said.

SEB Pank Grupp, another Scandinavian-owned bank operating in Estonia, reported a profit of €93.9 million for the first half of 2024, which was in fact down from €113.3 million in the same period in 2023.

Estonian-founded bank AS LHV Group achieved a consolidated net profit of €140.9 million in 2023, driven by record business volumes and profitable results across all subsidiaries.

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