Today, the parliament in Poland approved the country’s banking tax aimed at taxing all banks and some financial institutions 0.44% on their financial assets. 

Following the imminent signing of it into law, it is expected to come into force at the beginning of February. It is expected to bring in 4.4 billion zloty (€1 billion) this year.

The tax was one the Law & Justice’s key pledges in last years election. The revenue received is expected to cover the party’s generous spending promises.

During the debates, Development Minister Mateusz Morawiecki said banking taxes are common place in Europe and many other countries around the world. He added that Poland was only ‘doing the same as other countries.’

Poland’s banking association has said that the tax could stun credit growth  in the country.

Warsaw listed bank shares have been falling on the news, with the value of the zloty to the euro currently at the lowest level in 5 years.