Spanish ruling coalition proposes windfall taxes on utilities, banks

By Christina Thykjaer and Jesús Aguado

MADRID, July 28 (Reuters) - Spain's leftist ruling coalition introduced a draft bill on Thursday to create a temporary tax on bank revenues and power utilities' sales to raise 7 billion euros ($7.09 billion) by 2024, a spokesperson for the Socialist Party in Congress said.

The measures, part of package to help Spaniards cope with soaring inflation, include a 1.2% levy on Spanish power utilities' sales and a 4.8% charge on net interest income, a measure of earnings on loans minus deposit costs, and net commissions, the text of the proposal showed.

"There is no social justice without fiscal justice," Patxi Lopez said, adding that it was the duty of a "progressive government" to share the costs and consequences of the crisis "fairly and equitably".

The tax will only apply to companies with a turnover of at least 1 billion euros, while the threshold for the banks will be 800 million euros, according to the legislative proposal.

The law is expected to be designed in such a way that companies would be penalised if they pass on the increased costs to consumers.

Earlier this month, the Spanish government said it would implement temporary taxes on banks that would yield 3 billion euros, while the tax on energy companies' windfall profits is expected to raise 4 billion euros.
Reporting by Christina Thykjaer and Jesús Aguado; additional reporting by Emma Pinedo; editing by Inti Landauro and Frank Jack Daniel

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