Poland’s Bank-Tax Plan Sinks Stocks as Budget Risks in Focus (1)

Poland’s plan to increase taxes on banks jolted investors, wiping 33 billion zloty ($8.9 billion) off the valuations of Warsaw-listed lenders.

Warsaw’s benchmark WIG20 stocks gauge sunk 4.7% on Friday, the biggest decline among primary indexes tracked by Bloomberg. The WIG-Bank sub-index dropped 9.5%, the most since a global selloff stoked by US tariff announcements in April.

The Finance Ministry proposed to boost the corporate tax rate for banks to 30% next year, from 19% now, before gradually reducing the levy. It’s seeking to rein in a fiscal deficit that’s ballooned to more than 6% of economic output as the ...