Spain’s Tax on Energy Firms Profits is Going Better Than Planned

The Spanish government may collect more than expected from a windfall tax on energy firms and lenders which had a €3 billion ($3.2 billion) income target this year, according to a top official.

(Bloomberg) — The Spanish government may collect more than expected from a windfall tax on energy firms and lenders which had a €3 billion ($3.2 billion) income target this year, according to a top official.

Budget Minister Maria Jesus Montero said Tuesday that the government has already received about €1.45 billion from the initial tax payment. 

Prime Minister Pedro Sanchez surprised markets last year with a proposal to impose a 4.8% tax on profits made by energy companies for two years, as part of a set of measures and levies to offset a worsening cost-of-living crisis.

The tax, designed to offset the unequal impact of soaring inflation, is expected to last two years and is collected twice a year. 

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