Government seeks legal way to ensure justice does not lower taxes on banking and energy

Calviño declined to specify what would happen. taxable event banking tax, i.e. that would incur a tax obligation. Regulations prohibit the taxation of two taxes for the same taxable event ( double taxation which vice president is referring to), so uncertainty about exactly what will be taxed is a big reason. expectation and lucubrations in the financial sector.

Principally may not have benefits -Unless there is a change in criteria- Since he is the Minister of Finance, Maria Jesus MonteroSaid it was Tuesday create two new tributesno additional fees Corporation tax (which taxes business results). This is also, in principle, tax deposit that financial institutions keep for their customers there is already a certain tax It’s about savings products. It was created in 2012 by the previous Rajoy Government to prevent each autonomous community from forming its own community.

The definition of both taxes is key in determining the possibilities that energy companies and credit banks have. take the matter to court contentious-administrative. Electric companies, for example, have traditionally been very active in challenging laws that harm them, not financial institutions. Again, AEB, president of the banking association Alejandra KindelánHe didn’t rule it out entirely. “It’s too early to talk about such a thing. we’ll have to see the details“, ‘TVE’ also stated.

Customer costs

What Calviño and Montero wanted to impress was the Government’s prevent affected companies transfer cost new taxes to their customers in the form of price increases. “We thought it would forbidden effect from this tax to the final price paid by citizens. On the other hand, all functions will be provided to CNMC so that to watch and if applicable sanctions If any of the companies escape from legality”, the person in charge of the Treasury stated as ‘Ser’.

However, various financial sources So hard competition authority can identify indirect effects new tax on customers and relate them to the creation of the tax. Thus, they argue, the precaution could be the cause. Medicine new credit increase more or something more deposit something is paid little What if tax did not exist as a way to bear the new financial cost (when they started charging).

less credit

Kindelán said the measure “will hinder the ability of banks to finance themselves in the markets and therefore, hinders your ability to lend to families and companies, which is what they need right now.” cost effectiveness (earnings on capital) “Very low” in its activity in Spain and “no certainty” the increase in interest rates will be transferred increase in profitThe government argues it justifies the tax.

Calviño, however, assured them the opposite: that the rate hike would have helped them. “extraordinary benefits”. The truth is that the rise euribor From -0.5% to about 1% now interest increases announced by the European Central Bank, a gradual increased income your assets. But it’s also true that men carry historically low levels normalization over six years and the effect of the increase in the money price on other financial variables, for example guilt and financing cost in the capital markets.

The vice president also denied that the flow of credit into the economy would be affected. To discuss it, he argued ICO public guarantees for bank loans given to pandemic companies “provide liquidity economy as a whole, but also strengthen balance sheets avoid assets and Financial Crisis“As in the 2008-2012- period. “During the pandemic years, the whole community supported the financial system“Calviño confirmed that he will meet with banking employers next week.