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ARCHIVED - Spain plans new windfall tax on richest 1 per cent
The newly announced tax will come into force in January 2023 and target the wealthiest in Spain
The Spanish government is studying a new increase in taxes for the largest 1% of incomes and wealth in the country, although the specific details of how this will be done have not yet been released.
Minister of Finance, María Jesús Montero, has said that the new tax will come into force on January 1, 2023 and will be “temporary”, with the option to extend beyond its initial (unspecified) duration.
This is the same format the government has used for its new taxes on big banks and energy companies.
One party leader in the Congress says that the law doesn’t go far enough and should be permanent, built into the structure of the state apparatus, and outlines that if not it will be hard to stop the wealthiest in society from putting their money in off-shore tax havens and finding other loopholes to avoid paying the tax.
The proposal was first brought to Congress by the government’s partners in leadership, Podemos, three months ago, but it was rejected on the grounds that “a state-wide tax that would mean a recentralisation of tax policy on wealth is not agreed.”
The government’s change of heart has been put down to the fact that “circumstances have changed”, although it doubtless has a lot to do with recent tax cuts announced by the opposition.
Andalusia this week scrapped its Wealth Tax on high earners, while Murcia has reduced Income Tax rates for 2023 by 4.1%.
This is part of a wider war between rival factions in Spain over whether to raise or lower taxes for the benefit of ordinary people and the economy, which is only likely to intensify as we approach election season.
Image: Archive
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