Unidas Podemos announced a proposal this Friday aimed at the Congress of Deputies that would double the temporary tax rate levied on banks. The plan would increase the rate from 4.8% to 9.6%, arguing that the sector has benefited more than others. The measure is paired with the creation of a Social Responsibility Fund designed to support vulnerable households, with a target equivalent to half of the tax receipts anticipated from the new levy.
The objective behind this fund is to provide direct relief to families affected by the higher charges. The relief would be calculated so that monthly mortgage payments are reduced by roughly half, reflecting the difference between the rate applied during the most recent review and the level recorded in February 2022.
Additionally, the proposal suggests extending this assistance to commercial properties and offices that are owned by small and medium-sized enterprises or self-employed individuals who hold no more than three such properties, have reported losses in the past year, and owe money to creditors under specified criteria.
The Bank of Spain is cited as a reference point for the broader impact of monetary policy, with supporters arguing that the bank’s actions support GDP growth toward the two percent mark once again. The plan notes that the rate increase would be collected as part of the larger financial framework currently under review by lawmakers.
In the reasoned statement accompanying the proposal, Unidas Podemos emphasizes that financial institutions would be obligated to pay the temporary tax as well as any applicable interest and commissions, consistent with the framework approved at the end of the previous year. It is noted that, in 2019, banks contributed 4.8 percent of their total net income from interest and commissions, a figure cited as being substantially beneficial to the sector.
Opponents counter that, in the context of ongoing rate increases by the European Central Bank, households with mortgages are already facing greater difficulty in keeping up with payments. The proposal, therefore, argues for a doubling of the provisional tax rate on credit institutions and financial lenders, from 4.8% to 9.6%, as part of a broader effort to channel resources toward social protection and economic stabilization.
Ione Belarra, the Minister for Social Rights and the 2030 Agenda, recently commented on the issue during a public statement. She criticized the central government for what she described as an inadequate approach to providing these benefits and indicated that her party would push for higher rates that would predominantly affect large banking institutions. The discussion took place in the lead-up to local elections, with the party framing the measure as a way to address persistent inequalities in the financial system and to fund essential social programs.