MADRID – The Spanish government wants to introduce a tax on the richest one percent of citizens for two years in order to raise enough money for increased budget spending, Budget Minister Maria Jesus Montero said on Thursday.

The tax should start next year, Montero said, noting that due to parliamentary procedure it may not be ready for the very beginning of 2023 and that she is discussing the measure with the junior coalition partner Podemos, which included it in its election program.

She did not provide details on the tax rate or expected revenue, saying only to the television station laSexta that it should be paid by “millionaires”, in the income category that makes up one percent of citizens.

She added that the government is also preparing new taxes for energy companies and banks.

“We will use a similar scheme for both energy companies and banking. In the next two years… the great wealth of this country will be asked to ‘dig deep into their pockets’ for a certain period,” Montero said.

Spain will hold local and regional elections next year and is already widely debating whether taxes should be cut or increased in order to curb inflation and ease the economic difficulties caused by the Russian invasion of Ukraine.

The minister said that in the discussion on the draft budget for next year, the main stumbling block is increased defense spending.

The government has increased expenditures in line with the obligation of NATO members, which must raise defense spending to two percent of GDP by 2029, Reuters notes.

Source: seebiz.eu