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Spain Slaps New Tax on Banks to Help Ease Price-Crunch Pain

  • Government will also introduce a tax on energy firms
  • Exceptional tax on big financial firms to raise EU1.5 billion
Pedro Sanchez during the parliamentary debate on the State of the Nation, in Madrid on July 12.

Pedro Sanchez during the parliamentary debate on the State of the Nation, in Madrid on July 12.

Photographer: Pierre-Philippe Marcou/AFP/Getty Images

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Spain will impose new taxes on large banks and energy companies, wresting billions of euros from business to fund policies to ease the impact of record inflation on consumers. 

The levies on both financial institutions and energy firms will last for two years. The government expects the former to raise about 1.5 billion euros ($1.5 billion) per year, while the windfall tax on energy firms, which have benefited from surging prices, will collect 2 billion euros a year.