Spain seeks to drum up 3.14 billion euros with windfall tax on top earners

Madrid, Sep 29 (EFE).- The Spanish government on Thursday announced a new windfall tax on the country’s highest earners and a break for its lowest in a bid to drum up an extra 3.14 billion euros ($3 billion) over the next two years.

The so-called solidarity tax announced by finance minister María Jesús Montero would apply to those earning over 3 million euros a year in 2023 and 2024 and is set to affect 23,000 taxpayers.

Spain’s government, a progressive minority coalition between the Socialist Party (PSOE) of prime minister Pedro Sánchez and the far-left Unidos Podemos, is also to raise the threshold for income tax reduction from 18,000 to 21,000 euros per and the tax exempt bracket from 14,000 to 15,000.

Montero said the move at the lower end of the salary scale would benefit around half of the Spanish workforce – whose average salary is 21,000 euros – with around 1.88 billion euros retained by workers across the board.EFE


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