‘Taxes’ of PSOE-Sumar deal put the company in a state of war

In this week’s wave of business results, companies are taking advantage of the corporate presentation stage to talk taxation. Faced with the prospect of a repeat government of PSOE-Sumar and minority forces, companies were alert to the announcement of an agreement between these two parties to expand taxes on banking and energy and increase corporate taxes. Up to 10,000 million euros more. Repsol, which recorded a profit of 2 billion 785 million euros (14% more than the previous year) until September, reacted strongly to the PSOE and Sumar agreement this Thursday and threatened to move major projects from Spain elsewhere if the agreements remain in force. ‘ To the large electricity companies and banks, which affect a large part of the company’s revenue in Spain. On the other hand, Antonio Garamendi, President of the Confederation of Business Organizations (CEOE), attacked the government plan presented this week by Pedro Sánchez and Yolanda Díaz. “The serious problem is the implementation of populist formulas that only work to the detriment of corporations.”He said the following in his statement to the media within the framework of the XXII CEDE Executives Congress held these days in Granada (Andalusia).

Garamendi criticized the reduction of the working day to 37.5 hours in 2024, one of the star measures presented by PSOE and Sumar on Tuesday. “Many agreements between companies and workers already include the 37.5-hour working day, and forcing this by law is interventionism, populism. It will particularly affect sectors such as rural areas, commerce or hospitality.“, remarked the CEOE president. He was not the only businessman to criticize the Executive at the CEDE summit this Thursday. Isidro Fainé, president of the LaCaixa Banking Foundation and the CriteriaCaixa holding company, pointed out: The current political scenario is shaking up the business environment in Spain: “In which companies operate today “The environment is characterized by two disturbing elements: complexity and uncertainty, which will likely worsen in the future.”

Repsol, on the other hand, stated that there is a possibility that this tax applied to energy companies will be continued this Thursday. “punishescompanies that “invest in assets” IndustryCreate jobs and guarantee energy independence in Spain” and “goodness“to”importers Tax imposed on energy companies that do not create employment or relevant economic activity in Spain.” price crisis Together with that of banks, it levies a tax of 1.2% of the income of these companies in 2022 and 2023 (for their liquidation in 2023 and 2024), providing an impact of €444 million on the accounts of these companies in the first year.

He criticizes the taxation of banking sector income

Criticisms regarding the imposition of special taxes on its sector have started to come from the banking sector as well. The extraordinary tax that taxes financial income and net banking commissions, Banco Santander CEO Héctor Grisi said this Wednesday. “Significant impact” in a bad economic cycle. At the presentation of the results for the first nine months of the year, Grisi stated that this was “discriminatory because it stigmatized the sector” and could be sustained over time, as envisaged in the investment agreement between PSOE and Sumar announced yesterday. because it is imposed on income, not profit. The bank generated revenue between January and September. 11.3% more, up to 8.143 million, The highest result in the first three quarters of a year in its history. The organization is on track to end the year with an annual result. 10,900 and 11,000 million euros This figure was realized at the end of the year, compared to 9 billion 605 million in 2022. If this happens, it would be the best annual profit result since its founding in 1857.

Grisi pointed out that income will be taxed in a bad economic cycle Their decline harms the granting of credit. Explaining that the bank’s position is not to increase taxes on other banks, Grisi said, “We understand that governments need to collect, but all companies must pay the same money.” he argued.

During the presentation of the organization’s results last week, Bankinter CEO María Dolores Dancausa also expressed her desire for the extraordinary banking tax to end after the planned two years, regardless of which party forms the Government.

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“I hope that no matter which government comes in, the end of the temporary tax practice will be preserved. Changing the rules of the game would be very negative news and create legal uncertainty” said the bank’s first executive at a press conference reporting the bank’s quarterly results.

The Board recalled its opinion that the tax was “unfair”, as in all public interventions to date. Bankinter paid 77.5 million euros in new extraordinary banking tax this year. Dancausa explained that since the tax focuses on the interest margin, the payment required next year will be higher based on this year’s results..