Banks and taxes

I refer to the letter by Dr Frank Portelli entitled "Banks and taxes" (The Sunday Times, May 7). I do not see any reason why the profit made by banks should be taxed any differently from other profit made by commercial entities.

Does he want to go back to the good old Eighties when a tax rate of 65 per cent was applied, stifling any economic activity? Some of the banks have a multitude of owners, among them many smallholders like pensioners and a dividend payment to them can mean a lot. Is it fair to take another 30 per cent tax over the 35 per cent already withheld now?

Should these pensioners who invested some of their savings in shares now help pay for those living beyond their means buying energy-wasting apparatus and who cannot afford the costs now because of the surcharge on energy consumption?

If any increase in tax or windfall tax is ever accepted, this should surely not be given as a refund or reduction on the surcharge on energy, benefiting for a short while mostly those who have large bills. It should be used to build a wind-farm to generate electricity giving the benefit not only of a reduced surcharge but also lower fuel bill and cleaner environment forever to all of us.

Linking the size of the interest earnings of banks direct to profits was a bit out of place. I think he would not like it if the taxman would base Dr Portelli's hospital's tax bills in future on the fees paid by his patients without considering costs incurred.