Ribera proposes a tax increase on energy companies in the next Budgets
The third vice president and minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera, last week in Congress.
The third vice president and minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera, last week in Congress.Alberto Ortega (Europe Press)

The Government will study a “special taxation” on energy companies in the next General State Budgets. The third vice president and minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera, opened this Tuesday to a tax increase on electricity, oil and gas companies, which in recent months have seen their income statements strengthened by the brutal increase in energy prices. Spain would thus follow the path of other European countries, such as Italy or the United Kingdom, which have already announced taxes on extraordinary profits derived from the crisis.

“It is important to see if we need special taxation for electricity companies or special taxation for gas and oil,” Ribera stressed in an interview on TVE. “When is the moment in which it is pertinent to debate this? Probably in the context of the budget legislation, like the extraordinary measures, they should be discussed in the context of the decree laws that we have been approving to protect families and industry. So, each thing, in its own time”, he added. A ministerial spokesman has refused to make any further comment on the executive’s plans.

Some prominent members of the Executive, such as the Second Vice President and Minister of Labor, Yolanda Díaz, have urged in recent days to approve a tax on the benefits of energy companies even before the Budgets: already in the anti-crisis decree that the Government will extend in the next few days until September 30. Díaz announced on Monday talks with the PSOE for the implementation of an “extraordinary” tax on these companies – in her case he specifically referred to the electric ones – as well as a public transport discount to reduce the use of the private vehicle .

If it crystallizes, the measure would mean incorporating Spain into the growing group of European countries (the United Kingdom, Italy, Greece, Hungary) that in recent times have tightened taxation on electricity and oil companies. In the first case, the government of the conservative Boris Johnson announced two weeks ago a “finalist and temporary rate” of 25% on “energy benefits”. The income from this fiscal figure for the public coffers is estimated at more than 5,800 million euros, but the main critics of the measure point out that in the hasty calculations of the ministry, not all the deductions that the large energy companies could achieve were estimated.

In the Italian case, the Executive of the liberal Mario Draghi launched in March a 10% tax on the extraordinary profits of energy firms, which he raised to 25% a month later. The objective: to help finance the aid package for consumers and companies worth 14,000 million euros approved to contain the escalation of electricity and fuel. Analysts, however, add that the impact on the income statements of these companies will be “limited”.

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