Spain’s new windfall tax on banks and energy companies could raise more money than predicted

A new windfall tax on excess profits made by banks and energy companies in Spain could net more than the €3 billion forecast for this year.

The measure introduced in the wake of extra profits generated by the effects of the Ukraine war and the energy crisis was anticipated to make at least €6 billion over the next two years.

Speaking in Madrid after Tuesday’s meeting of the Council of Ministers, Finance Minister, Maria Jesus Montero said government coffers could be boosted still further.

“We believe we could exceed €3 billion this year,” she commented.

The minister revealed that banks have already paid €637 million of the new tax by Monday’s first instalment deadline, with energy firms coughing up €817 million.

Last week, oil company Repsol lodged an appeal before the National Court against the temporary levy which is being used to pay for government anti-inflation programmes.

Maria Jesus Montero said: “Banks and energy firms have produced unprecedented profits with energy companies reporting rises of up to 43%, with some of those only declaring results that go up to last September.”

“This tax is quite a manageable amount given the volume of profits and is not a confiscatory tax, but somewhat proportionate to these profits,“ she added.

Referring to the banking crisis that started in 2008, Montero said that ‘citizens had to endure the rescue of millionaires’ and now ‘it was up to’ those entities to help society.

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