The tax on energy companies, which the Government created due to the recent inflation crisis and wanted to make permanent, will expire on December 31. This comes after the period for submitting amendments to the bill aimed at achieving that permanence has concluded. The Treasury did not gain the support of Junts – crucial for advancing the initiative.
The elimination of the tax on electricity companies will result in a decrease in revenue starting in 2025. The Tax Agency has collected €1.164 billion through this tax over the past two years. Junts insisted on the need for tax hikes not to harm energy companies. It is worth noting that Repsol threatened to move its future investments in Tarragona to Portugal if the permanence of the tax went ahead. The company led by Josu Jon Imaz plans to invest €1.1 billion in a project to convert urban waste into fuel in Tarragona.
Junts does allow the exceptional tax for banks to remain for three years, with modifications. According to the registered amendments, it will include a 25% discount on the Corporate Tax declaration. Additionally, they have managed to make the application of the current tax ‘progressive,’ applying a higher or lower rate based on the size of the banks.
Meanwhile, the Basque nationalists of the PNV have confirmed that the amendments agreed upon with the PSOE will allow taxes on banks and multinationals to be applied through the tax regimes of the Basque Country and Navarra, in compliance with the Economic Concert Law. The PNV wanted this figure to be a tax so that they could negotiate and ‘adjust’ it within their territory.
