Spain plans to introduce a temporary tax on large fortunes

Spain plans to introduce a temporary tax on large fortunes

The Spanish government wants to create a temporary tax And an exception for the richest 1% of the population helps fund measures to offset rising inflation, the finance minister announced, Thursday.

β€œIt is in our interest to be able to fund aid aimed at the middle class, the working class of this country,” Maria Jesus Monteiro explained on network television, β€œthose who contribute proportionately to the financing of public services.” VI.

For this reason, the government is “working” to implement a tax “in a completely exceptional way” after those already announced for the country’s large energy and banking groups, to achieve a “larger contribution” of large fortunes to the budget, on an ongoing basis. .

Monteiro insisted that this tax should come into effect in 2023 for a period of “two years” and affect “no more than 1% of citizens”.

However, the Minister did not specify what form this extraordinary tax would take, nor how much revenue the Executive intended to collect with it.

Montero’s announcement comes in the midst of a financial battle between the government of the socialist president Pedro Sanchez And the People’s Party (PP, right-of-conservative), the main opposition formation, which has already announced tax cuts in many of the regions it heads.

These fiscal measures – affecting income taxes, but also wealth taxes, as in Andalusia – were heavily criticized by the left, which denounced the policy of “financial dumping” that upsets the balance between regions, in times when Spain was piling up. Numerous expenses.

In the face of accelerating inflation (10.4% annually in August), Spain in recent months has doubled measures to preserve household purchasing power, such as fuel subsidies and part of public transport permits or an increase in pensions.

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Sanchez estimated the cost of these various aid plans at around 30 thousand million euros (about $29,500 million), which is equal to 2.3% of the country’s GDP.

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