The tax hike to banking and energy puts 72,000 jobs in check, according to the IEE


The Institute of Economic Studies calculates that the temporary taxes on energy companies and banks, due to the extraordinary profits they are obtaining during the crisis caused by the escalation of prices and the war in Ukraine, can cause a loss of nearly 72,000 employed which, according to the CEOE study service, would be equivalent to a 0.4% contraction in employment. In its opinion report on the General State Budgets for 2023, the group of experts points out that the medium-term carry-over effects that these two taxes will have on the economy will be more relevant than the direct impact on the two affected sectors.

Always in accordance with their calculations, the tax on energy companies (1.2% of the net amount of their turnover) and that established for entities (4.8% of the interest margin and net commissions of the entities finance companies with revenues of more than 800 million euros) “could have a contractionary impact on total economic activity of almost 5,000 million euros“This amount is equivalent to four tenths of the GDP of 2021. Of it, around 1,200 million would correspond to the most direct and immediate effect, and the rest (3,800 million euros) would be due to this dragging effect on the economy as a whole since medium term.

With the energy tax, the Government expects to raise 2,000 million euros a year during the two that will be in force. In the case of the bank tax, the objective is enter 1,500 million each of those two years, for which they will raise a total of 7,000 million euros. From the IEE they maintain that both this type of figures and those that could be developed in the future and that affect “extraordinary benefits” are unjustified and introduce significant distortions and damage to economic activity.

The employers’ ‘think tank’ emphasizes that the sectors on which the taxes fall (financial and energy) are essential for the economy, so increasing the obstacles they have to face -which in their opinion are very high in regulatory terms- erodes economic activity and employment. It also explains that the two sectors in Spain already support a level of taxation higher than the average for the economy, given that they must pay 30% in Corporate Tax, instead of the general rate of 25%, in addition to supporting sectoral taxes specific.

From the Institute they warn that it is foreseeable that there will be appeals to the courts of justice against both taxes and, with the background of other previous reforms, the judicial control could lead to the total or partial annulment of taxeswhether “for reasons of retroactivity, violation of economic capacity or even formal”, with the consequent added cost for taxpayers and with the harmful effects that this scenario could have on investment.

Brussels and the ECB speak out

At the end of last month, the Ministers of Energy of the Twenty-seven They approved a new package of emergency measures to lower the price of electricity that included, among other things, the possibility of taxing the benefits of energy companies, which in practice was a boost to the measure approved by the Spanish Government. Among the extraordinary decisions, a mandatory cut of 5% in electricity consumption at peak hours was also incorporated.

Meanwhile, the president of the Supervisory Board of the European Central Bank (ECB), the Italian Andrea Enria, recently warned that the special taxes on banks that some countries in the euro zone are raising must take into account the provisions so that they have the proper incentives. “My impression is that, sometimes, these taxes are aimed at income in general of interest or commissions and fees without taking into account the provisions. Therefore, in terms of incentives, they may not be exactly adequate,” he pointed out in a conference held in the middle of the month.


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