Iceland is to introduce a hefty 39 percent exit tax on assets from its failed banks starting next April as part of moves to lift capital controls imposed after the tiny island nation's economy collapsed seven years ago.
Following a vote in Parliament, the government said Monday it will impose the tax as part of the lifting of the capital controls. The hope is that the end of the controls won't prompt a mass exodus of money from the country if the cost of doing so is prohibitive.
The moves announced Monday are designed to free up about 1,200 billion kronur ($9 billion) in assets have faced restrictions since the 2008 financial crisis, when Iceland went from economic powerhouse to financial disaster almost overnight.
The government said the so-called "stability tax" could raise as much as 850 billion kronur.
Prime Minister Sigmundur David Gunnlaugsson said the government was taking "unprecedented measures ... to address unprecedented circumstances."