Fedea questions banking and energy taxes for their “ideological burden”
Rapa dust to the Government for its fiscal policy. The Foundation for Applied Economics Studies (Fedea) questions several of the ‘star’ tax measures recently approved by the Executive of Pedro Sánchez. They consider, specifically, that the bank tax, the one levied on extraordinary profits from energy companies and the tax on large fortunes -announced to reduce the impact of inflation and the crisis on the Spanish economy– are “very questionable” and are motivated by “a strong ideological charge” and are driven by an electoral vision of the current situation.
The organization, which is one of the economic analysis institutes that the European Commission, the IMF and the OECD regularly consult to form an opinion on the state of the Spanish economy, presented its crisis monitoring bulletin on Tuesday, where analyzes the latest package of tax measures, along with other macroeconomic indicators. Its Director of Studies, Ángel de la Fuente, has emphasized that the Executive should focus on carry out an income pact that includes pensions. Thinking in the medium or long term, consider that should pass an in-depth tax reform and “not a series of patches picking on the rich or certain regions.”
Furthermore, Fedea warns in its report that the proposed law that sets the levies on banks and energy companies “has exceeded the worst expectations” and that it can give rise to demands from the tax point of view that have very bad fit in a State of Law. The foundation urges the Executive to adapt taxes to European regulationswhich restricts this tax to certain energy companies and links it to extraordinary profits and not to real income.
The temporary rate on banks and large energy companies intends to raise 7,000 million euros until 2024 to ease the rising cost of living. While the tax on banks is levied at 4.8% on the interest margin and net commissions of entities, the tax on energy companies includes a 1.2% tax on the sales of electricity companies.
Last week, the European Central Bank (ECB) asked the Executive to carry out an exhaustive follow-up of the possible effect of the banking tax on the granting of credit and on the resilience of entities and questioned whether they could not pass it on to customers, which is the red line that the Government has marked for them. The Bank of Spain recently pointed out that both this temporary tax and the one levied on energy companies will bring about a transitory improvement in the public deficit of three tenths. Meanwhile, the Institute of Economic Studies calculates that the two taxes could cause a loss of nearly 72,000 employed persons, which, according to the CEOE study service, would be equivalent to a 0.4% contraction in employment.
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