Congress approves increase in personal income tax on incomes above 300,000 euros, but scraps the bank tax

The Finance Commission of the Congress of Deputies on Monday approved a two percentage point increase in personal income tax for savings income above 300,000 euros.28% to 30%but it has the enforcement of the bank tax with the abstention at ERC, EH Bildu and BNG.

The committee, in which changes were negotiated and exchanged until the last minute, also agreed to reduce corporate taxes on cooperatives and companies invoicing less than one million euros and improve taxation of artistic activities.

A bonus has also been approved on social security contributions for sports clubs and non-profit associations.

The maintenance of the bank tax has been completed in the air until the last moment -an alternative text has been registered, agreed by PSOE, Sumar and Junts, which includes an additional section – and there has even been a tie vote (due to the abstention of ERC, EH Bildu and BNG), although in the end the text fell through the weighted vote.

These initiatives are included in the bill that a minimum corporate tax rate of 15% for multinationalswhich still needs to be voted on in the Finance Committee, as well as the rest of the Spanish government’s budget package and the amendments tabled by the rest of the political groups, including those calling for the maintenance of the energy tax.

Tension and confusion

The debate in committee took place in an atmosphere of strong tension and confusion, with pauses, long technical discussions and signs of confusion among all parliamentary groups about what was being voted on.

The rejected amendments can survive in next Thursday’s plenary meeting – and can therefore be discussed and voted on again.