Spain’s ruling coalition proposes extending bank tax to foreign branches

MadridNovember 10 – Spain’s ruling left-wing coalition has introduced amendments to its bank tax proposal that would allow the government to tax branches of foreign banks overseen by the European Central Bank in the country, regardless of their income.

Bank tax includes a 4.8% interest margin rate and net commissions from banks above the €800 million threshold in the original issue. This excluded smaller Spanish financial entities and branches of foreign banks in Spain.

The coalition parties said in the joint amendment proposal, Thursday, that “the entities are subject to direct control by Hezbollah European Central Bankincluding branches established in Spain of foreign credit institutions, regardless of their total interest and commission income.

The proposal for modification comes after European Central Bank Last week, he warned in a non-binding opinion that the Spanish bank tax proposal could harm banks’ capital and also distort competition in the market and undermine a level playing field.

The government introduced the original bill to create a temporary tax on banks in July, and it is still under discussion in Parliament. Its goal is to raise 3,000 million euros by 2024.