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New environmental taxes will form a key part of Spain's attempts to meets its budgetary commitments under European Union fiscal rules.
According to the revised budget plan for 2017 sent to the EU earlier this month, the Government plans to raise an additional EUR500m (USD522m) a year from environmental levies. While the plan does not go into much detail, it says that the taxes will target carbon emissions.
The Spanish Government announced a revenue-raising Budget on December 2 that will increase the tax take from corporations.
While the recently formed Government chose to leave the 25 percent corporate tax rate intact, Spain will restrict corporate tax deductions. These will contribute much of the EUR7bn in new revenues the Government is targeting.
The Budget imposes new limits on loss carrybacks, and restrictions on the use of losses linked to shareholdings in companies located in "tax havens or in territories that do not an appropriate level of tax," among other changes.
In addition, property values will be updated for the immovable property tax, to boost revenues. The Government also intends to raise a number of "sin" taxes, including those on alcohol, tobacco, and sugary drinks.
Spain's budget deficit is expected to reach 4.6 percent this year, and the country faces an EU fine unless it can reduce the deficit to three percent or lower next year.
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