Spain will extend a controversial windfall tax on banks and energy companies by an extra year, but has softened the blow to some businesses that oppose it by introducing a tax break for green investments.
Prime Minister Pedro Sánchez on Wednesday announced the two-year tax would be rolled over into a third year after his cabinet’s final meeting of 2023, a move that will anger companies that have criticised it as unfair and harmful to business.
The tax was introduced to fund measures to alleviate the impact of inflation on Spanish citizens, including by funding subsidies for fuel and public transport. It was focused on businesses that the government said had been benefiting most from high interest rates and energy prices.
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