After announcing the creation of extraordinary taxes in the banking and energy sectors, the Spanish government announced on Thursday how it intends to put the plan into practice. Bank income will be subject to an extraordinary tax of 4.8%, while energy will be subject to a new temporary tax of 1.2%.
According to the press from the neighboring country, the new taxes will apply to some 20 large companies, which will not be able to pass on these costs to clients, otherwise they will be subject to a fine equivalent to 150% of the value of the costs passed on.
Spanish government will create extraordinary taxes on banks and energy companies. “We will not tolerate them taking advantage of the situation”
Pedro Sánchez’s executive hopes to raise around seven billion euros in the next two years with this measure. The objective is to finance, with this amount, support measures for families and companies, after the rise in inflation.
The tax on the income of large energy companies will be in force in 2023 and 2024, and will allow the State to collect two billion euros a year.
The tax will be applied on the net value of the income obtained in the previous year. In other words, the 2023 tax obligation will refer to the sale of goods and services in 2022, and the 2024 tax will be applied to 2023 income. Companies will be able to pay the corresponding amount until September, but in February they will have to pay a part of the amount due.
The rate will only be applied to companies whose turnover exceeds one billion euros, taking the 2019 financial year as a reference, so that the possible distortions caused by the pandemic are not reflected.
If a company has more than one activity and the energy business represents less than 50% of its income, it is exempt from the tax. Only income declared by companies in Spain will be taxed.
The extraordinary tax on financial entities, which will also be in force in 2023 and 2024, will provide the State with additional income of 1,500 million euros per year. Like the energy companies, they must pay the tax until September, with a first payment in February, corresponding to the previous year. However, in banking, the tax is applied to interest and commissions, and will be charged to entities when this amount exceeds 800 million euros per year.
The argument of the Spanish Government to justify the new taxes is the fact that these companies are benefiting from the rise in inflation. “We will not tolerate anyone taking advantage of the situation,” Pedro Sánchez said on July 12, during the State of the Nation address.
The measure is, for now, a law proposal from the coalition government of the PSOE and United We Can, and it still has to be approved in Congress, where it can be modified. According to the Spanish press, the companies are likely to go to court to stop the new obligations.
Source: Observadora
