Spain announces extraordinary tax on energy groups and banks

Madrid will “impose a tax on the extraordinary profits of large energy companies”, which will allow the state to recover about “two billion euros” per year in 2023 and 2024, the head of government said.

The Spanish government on Tuesday announced an extraordinary tax on the profits of large energy and financial groups to offset support measures taken in recent months in the face of rising inflation.

“This government is not going to tolerate that there are companies that take advantage of the crisis to enrich themselves”, assured Socialist Prime Minister Pedro Sánchez, with the intention of supporting the Chamber of Deputies with purchasing power. described a range of measures. Spaniards, hurt by rising prices.

Spain would thus “impose a tax on the extraordinary profits of large energy companies”, which would allow the state to recover about “two billion euros” per year in 2023 and 2024, the head of government specified.

two years tax on banks

The introduction of this extraordinary tax, intended to relieve Spanish public finances weakened by the economic crisis, was noted by the prime minister in late June. But the latter did not specify the amount or duration of the tax measure then.

In addition, Pedro Sánchez announced a “temporary tax on large financial institutions that have begun to benefit from the increase in interest rates”. The tax that would concern banks “will last for two years and will make it possible to collect 1.5 billion per year”, he said.

Several European countries have announced unexpected levies on corporate profits in recent months to take advantage of inflation – particularly in energy groups, which made huge profits last year.

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Even UK…

Thus the very liberal United Kingdom has introduced a temporary tax of 25% on the profits of the oil giants to finance the most disadvantaged families. Italy, for its part, has decided to impose an additional 25% on the profits of large companies in the energy sector.

Madrid has adopted a series of measures to control inflation since last summer, which reached 10.2% in a year in June, its highest level in 37 years. These include assistance on fuel, reduction in VAT on electricity and increase in retirement pension.

“Since prices began to rise (…) Spain has raised 30 billion euros to support its businesses and consumers, “equivalent to 2.3% of its gross domestic product (GDP),” Mr Sanchez recalled on Tuesday. did.

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