The war in Ukraine has pushed up the cost of living and energy prices in Europe. Energy companies and banks in particular were able to make significant profits as a result. While debates are still going on in Austria and other EU countries regarding the possible introduction of tax increases for these companies, Spain, following Italy, has now also decided to impose an excess profit tax on energy companies and banks in the near future.
As the Spanish government announced yesterday, Spain’s energy companies are to be subject to an additional 1.2 percent excess profit tax this year and next. An additional tax of 4.8 percent on net interest and customer fees is planned for financial institutions and banks. Both sectors are to be prohibited from passing on the additional taxes to their customers.
Alleviate the consequences of inflation with money
The government in Madrid is hoping for additional tax revenue of seven billion euros. The left-wing government of socialist Prime Minister Pedro Sanchez wants to use the money primarily to alleviate the consequences of high inflation for the population. The money is also planned to finance a free monthly subscription for local transport from September to the end of the year.
The initiative is to be passed in parliament following the summer break. The left-wing coalition partner of Unidas Podemos supports the initiative of Sanchez’s socialists, as do the separatist left-wing republicans (ERC) ruling in Catalonia, which means that there is already a sufficient parliamentary majority. The conservative opposition, which had called for tax cuts to combat the crises, has sharply criticized the measures.
