Additional Solidarity Tax on the Banking Sector. Ombudsman recommends that the Minister of Finance repeal the regime on which the tax is based

The Ombudsman has sent a recommendation to the Minister of Finance to repeal, as soon as possible, the regime on which the so-called Additional Solidarity Tax on the Banking Sector (“ASSB”) is based.

After an in-depth study of the tax, carried out following the receipt of a complaint, it was concluded that it violates the principle of ability to pay, as well as the principles of non-retroactivity and equality (in its prohibition of arbitrariness dimension). This judgement is in line with the scarce but unanimous doctrine and case law already known on this subject.

In the Recommendation sent to the Minister of Finance, the Ombudsman finally explains the reasons, in particular the risk of heavy burdens on Social Security, that led her to choose to suggest a legislative change, rather than submitting the regime to the Constitutional Court.

To read the Recommendation click here [in Portuguese only].