Banks and other financial institutions face paying two taxes to pay for future bail-outs. BBC business editor Robert Peston said that the proposals by the International Monetary Fund (IMF) were "more radical" than had been anticipated. All institutions would pay a flat-rate levy and also face a further tax based on profits and pay.
The measures are designed to make banks pay for the cost of future financial and economic rescue packages. "The proposals are likely to horrify banks, especially the proposed tax on pay," Peston said. "They will also be politically explosive both domestically and internationally."
