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The Government will agree with the groups on the modifications to the banking tax

Date: July 13, 2024 Time: 18:31:58

The Government could address the changes it is considering applying to the extraordinary tax on banks in the next meeting it plans to hold with those responsible for the sector on the Code of Good Practices. Beforehand, the Executive intends to agree with the parliamentary groups on those modifications that, according to the Minister of Economy, Commerce and Business, Carlos Body, could involve “adjusting” them to fundamental elements of economic policy such as the evolution of interest rates. or the credit that the entities themselves grant to SMEs.

Sources close to the Government emphasize that the objective is to find a balance for both this rate and the one that taxes the extraordinary profits of energy companies, calibrate them and see if they end up becoming permanent, which will require prior negotiation with the partners. of Government, since originally they were only going to be in force for two years. In principle, it seems unlikely that these talks will take place before the Basque (April 21) and Catalan (May 12) elections.

The decision of the president of the Generalitat, Pere Aragonès, to advance the latter led the Government to renounce the General State Budgets of 2024, given that with ERC and Junts engaged in the electoral battle, he could not have the necessary support to remove them forward. Thus, the initial part of the year has been practically put on hold, waiting for the polls to shed some light on the new balance of political forces.

At the moment, in the specific matter of making the two rates permanent (PSOE and Sumar agreed in their coalition agreement to readjust and maintain them), the Executive does not have the support of Junts guaranteed but that of ERC. In its initial design, the temporary tax taxed entities that invoiced more than 800 million euros in 2019 with a rate of 4.8% on the interest and commissions generated in national territory by their banking activity.

Now, the Government would try to have a gesture with the financial sector similar to the one it announced with the energy companies, with which it promised reductions in the full amount of the tax for the investments that the companies made in strategic projects. Formula for which you are currently seeking legal reserve.

IMF recommendations and proposals on the table

After its last mission to Spain, the International Monetary Fund (IMF) recommended that the Government review both this tax and the energy tax if it made them permanent. The organization pointed out that the tax bases “should be adjusted to a clearer definition of exceptional benefits” to minimize the distorting effects of these figures and that both taxes “could be redesigned to achieve other key political objectives.”

According to “El Periódico” the banks are more focused on granting loans to SMEs, which would be in line with what was reported by the Corps itself on Monday.

Financial sources consulted by this newspaper specify in this regard that the interests of the entities may vary depending on their business, so that some will be compensated by the relief in the design of the beneficiary tax to those who grant more mortgage credit, to others That this prioritizes sustainable financing and there will be those that will prefer that it, in fact, be softened for those who focus their activity on loans to small and medium-sized businesses.

The president of the Spanish Banking Association (AEB), Alejandra Kindelán, warned last week that making the tax permanent will put national entities at a disadvantage compared to their main European competitors. Thus, it was shown that “it is not a conversation that needs to be had at this time”, marked by a context of high geopolitical risks (Middle East, Ukraine…) and by expectations of several drops in interest rates here. by the end of the year.

The next meeting on the Code of Good Practices, key

Government and banks agreed at the end of last year to expand the Code of Good Practices, both the one that has been in force since 2012 and the additional mechanism that was launched in 2022 to support families affected by the rise in interest rates. Thus, the maximum income threshold with which families could benefit from this was raised to 37,800 euros. The free commissions for early repayment or for the conversion of fixed-rate mortgages to variable-rate and mixed-rate mortgages were also extended.

Now the date is pending for the next meeting with the entities to address the progress of these measures – the last one, where their extension is authorized – the then first vice president and Minister of Economy, Nadia Calviño, the current president of the European Bank of Investments. Her successor met at the end of January with the presidents of the country’s main entities for a ‘first contact’ shortly after taking office.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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