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Excessive bonuses face punitive tax

Dutch banks which pay their executives excessive bonuses face a more punitive tax rate as part of a new levy that the Dutch government wants to introduce next year.

The new bank tax, which is expected to raise about €300m a year, will be levied at a rate of 0.022 per cent on short-term debt and 0.011 per cent on long-term debt, the finance ministry said in a statement. But the tax, first announced in July, would be 5 per cent higher if a bank pays directors bonuses exceeding 100 per cent of their annual salary.