The Government will apply the banking tax on interest, commissions and margins

The banking tax will be applied to banking income from margins, interest and bank commissions. This is one of the extraordinary taxes that the two formations that make up the coalition government -- PSOE and United We Can -- will register this Thursday in the Congress of Deputies in the form of a bill. In addition to the tax on banks, there will also be a tax surcharge on energy companies.

The big bank records the highest profit since the rescue in the record year of layoffs and office closures

Know more

Faced with the option of taxing profits, the tax on financial institutions will fall on bank income from margins, interest and bank commissions, according to has advanced the Cadena Ser. The gross margin of banking exceeded 84,000 million euros in 2021, while interest income reached 58,731 million and bank commissions amounted to 21,043 million euros.

The "exceptional and temporary" tax aimed at "the large financial institutions that have already begun to benefit from the rise in interest rates", as the Government has argued, will last for two years - on the 2022 and 2023 financial years - - and will seek to raise 1,500 million each year.

The Executive has already announced that the rule that will regulate them will include the explicit prohibition that these new taxes are passed on in the final prices that citizens bear. To do this, the National Markets and Competition Commission (CNMC) and the Bank of Spain will be given all the functions to monitor and apply sanctions in the event that any company breaks away from the law.

The new tax on "dominant groups" in the electricity, gas and oil sectors will be in force during 2023 and 2024 and will seek to collect 2,000 million euros a year from the extraordinary profits of these companies in 2022 and 2023.

Recover a tax four years later

The President of the Government, Pedro Sánchez, announced in the tribune of the Congress an extraordinary tribute for the sector for the extra benefits obtained by the future rise in interest rates. The head of the Executive thus takes up a proposal that he already defended four years ago but that ended up being kept in a drawer. So, it was proposed as an alternative to increase income for pensions. Now, this measure, which several European countries are already applying, will be aimed at improving income to cover aid against inflation and moderate the extraordinary profits that the sector could have in this context.

A dozen European countries already applies specific taxes to financial entities and countries like Hungary or Poland have also raised an extraordinary tax on banks. But the Government has not been the only one to focus on this option. The concern has even reached the ECB, financial supervisor and responsible for monetary policy. As reported a few days ago by the Financial Timesthe board of the organism is studying ways to limit the extra benefits that the banks can obtain with the rise in rates.

Source link