Financial injection in the billions
Spain’s wealth tax is taking shape
09/29/2022, 10:20 p.m
Free public transport, cheap petrol and tax cuts on gas and electricity are already a reality in Spain. However, high inflation is causing the population’s financial worries to continue to grow. To counteract this, the left-wing country wants to introduce a temporary special tax for well-heeled citizens.
Spain’s left-wing government has finalized its plans for introducing a temporary tax on the wealthy, which is intended to cushion the burden of high inflation on broad sections of the population. The special tax should be levied in 2023 and 2024 on assets of more than three million euros, said Finance Minister María Jesús Montero.
About 23,000 citizens would be affected. She is assuming revenue for the tax authorities of 1.5 billion euros, added the minister. She did not provide specific information on the amount of the tax rate. At the same time, she announced tax breaks for those on lower incomes. In addition, the duties of larger companies should be temporarily increased and those of smaller companies should be reduced.
Additional income should relieve citizens
Inflation in Spain was around 10.5 percent at times, but fell to nine percent in September, according to the statistical office. As in the rest of Europe, the reason for the high rate of inflation is, among other things, the sharp rise in prices for energy and food as a result of the Russian war of aggression against Ukraine.
The government had previously announced temporary special taxes for banks and energy companies, but the companies concerned want to defend themselves against them in court. The additional revenue is intended to help finance relief packages for citizens. There is already free public transport, cheaper petrol, tax cuts on electricity and gas and a special payment for student scholarship holders.