Spain advances with temporary taxation of large fortunes

Spain is advancing with a proposal for a temporary taxation for large fortunes, which should affect the richest 1% of the country’s population, according to Finance Minister María Jesus Montero. In an interview with the channel La FridayMontero indicated that the measure is due to the effects of the Ukrainian war on the economy, and that the government expects to carry out the collection from next year.

“It is a time to ask for a greater effort”, said the minister about the population with more income. The Spaniard said that the intention is that the crisis does not fall on the most vulnerable population, and pointed to measures of taxation of energy companies and banks as examples of this intention. According to Moreno, the ministry has been working to be able to finance aid to the middle and working class, which makes contributions necessary.

Among the programs highlighted by the minister are support for the payment of fuel and for students in the country. “We ask for a temporary effort from the great fortunes so that we can relieve those who are struggling,” she said.

In addition to advancing with taxation of fortunes and large companies, the administration of President Pedro Sánchez has recently reduced the value-added tax (VAT) on gas in the country from 21% to 5%, in a move to benefit the “ working middle class while at the same time making an equitable distribution”, according to Sánchez.

In Argentina, due to the crisis caused by the covid-19 pandemic, the government of President Alberto Fernández approved an extraordinary taxation for large fortunes. In addition to the collection, the measure received criticism for the possible incentive to tax evasion.