Business & Economy

Spain announces windfall tax on energy, finance firms to ease inflation pinch

Madrid, Jul 12 (EFE).- Spanish prime minister Pedro Sánchez on Tuesday announced a multi-billion-euro windfall tax for finance and energy firms to offset the toll of inflation for the country’s working and middle classes.

The extraordinary tax measure will be applied to financial entities 2022-23 and energy firms in 2023-24 with the aim of bringing in 7 billion euros — 1.5 billion from the banking sector and 2 billion from large energy firms each year.

“This government will not allow the suffering of many to benefit the few,” the Spanish Socialist Party (PSOE) leader said during a state of the nation address in parliament.

Sánchez, who leads a minority coalition government, warned that energy saving measures may be necessary when confronting potential supply shortages should Russia’s Vladimir Putin decide to cut off gas to Europe.

He announced that the government would fund monthly rail passes on some commuter lines run by the state company Renfe between September and December. EFE


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