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Thursday, October 6, 2022

Spain prepares a temporary tax on large fortunes to alleviate inflation

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For this reason, the Government is “working” to implement a tax “in an absolutely exceptional way” following the one already announced for the country’s large energy and banking groups, to achieve “a greater contribution” from large fortunes to the budget, continuous.

According to Montero, this tax should come into force in 2023 for a period of “two years” and affect “a population that does not exceed 1% of the citizenry,” he insisted. The minister did not specify, however, what form this exceptional tax would take, nor how much revenue the executive intends to collect with it.

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Montero’s announcement comes in the midst of a fiscal battle between the government of socialist President Pedro Sánchez and the Popular Party (PP, conservative right), the main opposition formation, which has already announced tax cuts in several of the regions it presides over.

These fiscal measures -which affect income taxes, but also wealth taxes, as is the case in Andalusia- have been highly criticized by the left, which denounces a policy of “fiscal dumping” that perverts the balance between territories, in times when Spain accumulates numerous expenses.

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Faced with galloping inflation (10.4% annual in August), Spain has multiplied in recent months the measures to sustain the purchasing power of households, such as fuel subsidies and part of public transport passes or the rise of pensions.

Sánchez put the cost of these different aid plans at almost 30,000 million euros (about 29,500 million dollars), which is equivalent to 2.3% of the country’s Gross Domestic Product.

Source: Ambito

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