Banks will have to start levying the tax for services rendered in March, with the government expecting EUR 35m in tax receipt per year.

NLB, the market leader, which will adjust prices effective on 1 April, says prices will rise only by the amount of the new tax.

The service fee for payment of bills up to EUR 50,000 will, for example, go up to EUR 1.93 from EUR 1.8.

NKBM, the country's no. 2 bank, has not yet decided on a price increase.

Meanwhile, SKB banka and Banka Koper will raise prices on 1 March, both indicating that the hike will be in line with the new tax rate.

The new tax will be levied on all transactions involving deposits, withdrawals, transfers, cheques and other payment instruments.

Services for loans, guarantees, cash transactions and insurance brokerage will also be subject to the tax, but stock market and investment fund transactions are exempted.