Windfall tax announced for banks and energy firms

Prime Minister Pedro Sanchez has announced plans to implement a windfall tax on power companies and banks that is expected to raise over €7 billion next year – in an effort to help lessen the impact of soaring inflation.

The announcement was made during yesterday’s State of the Nation debate at the Congress of Deputies, which also outlined how an increase in taxation on energy firms was expected to bring in an additional €2 billion this year.

It’s understood the levy will be imposed on large financial and energy institutions with a turnover of over €1 billion.

The taxation was one of a number of new policies announced, including additional funding for students and free rail tickets for suburban and medium-distance trains in the last quarter of the year.

Photos: Pool Moncloa/Borja Puig de la Bellacasa.