The purpose of this tax is to encourage banks to consider their capital position and to make appropriate risk adjustments when settling the level of bonus payments above the threshold which is the median earning in the UK If the bank choose to pay higher bonus that is not consistent with a prudent approach to risk, they should contribute more to the public finance when profits have been facilitated by significant taxpayer support for the banking sector as a whole (the 2009 Pre-Budget Report). Apart from the UK, France and Italy government also introduced bonus tax. While it is a one-time tax for France, it is a permanent tax for Italy.