Removes the veto to process the amendments of various groups in Congress, inclined to adapt it to the EU’s demands, as claimed by the affected companies
The upcoming tax on energy companies and banks still has the option of entering its trajectory on January 1 with a different scheme than the one originally proposed by the government in its idea to tax the extraordinary income billed by companies in both sectors. Executive is prepared to include in the debate over the consideration of the bill the amendments of various parliamentary groups, including some that advocate converting the tax to equate it with the recommendations of the European Commission. This means that electricity companies, gas companies and banks pay tax on their profits and not on the turnover they generate.
Everything will depend on the negotiations on the text, although the government decided yesterday to withdraw the vetoes it had exercised barely 24 hours earlier on the 70 partial amendments tabled by the various parliamentary groups.
Initiatives that will eventually be discussed include the PP’s proposals to tax the excess profits of energy companies with activities focused on oil, gas and coal at 33%, compared to the Treasury’s proposal to tax income, as well as the abolition of the bank tax.
The PNV faction also coincides with the representatives of the people and the European Commission itself in its intention to tax the benefits and not the settlement. Basque nationalists argue that the turnover in itself is “not indicative of the benefits obtained”. The PNV also wants to clarify that “the interest and commissions intended to be taxed are those obtained in Spain, both by entities established in Spanish territory and by non-resident entities operating in Spain, for example through affiliates, excluding interest and commissions earned in other jurisdictions”. In addition, it calls for the participation of the Basque Country and Navarre in the tax, in the framework of the future negotiations of the Joint Commission on the Economic Agreement.
For its part, the PDeCat also emphasizes the need to tax profits, not income. In addition, in the case of the tribute to financial institutions, the Catalan Nationalist Party has put forward proposals similar to those put forward by the entire financial sector in recent weeks. For example, that the tax be applied to all banks, regardless of their size, without limiting a minimum turnover from which it can be applied, so as not to affect the competitiveness of the sector.
Another PDeCat amendment calls for lifting the ban on entities transferring the tax to their customers. The party believes that this imposition “contradicts the freedom of doing business” and “contradicts” the guide of the European Banking Authority (EBA, for the acronym in English) on the origin and monitoring of loans.
Processing of the tax is expected to end before December 31 for the tax to be implemented in 2023.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
