Business The Ibex 35 loses 8,000 points after the announcement of taxes on...

The Ibex 35 loses 8,000 points after the announcement of taxes on banks and large energy companies

Ibex 35 securities at the Madrid Stock Exchange Palace, on June 15, 2022, in Madrid (Spain). – Eduardo Parra – Europe Press

The Ibex 35 fell 2% around 2:20 p.m. on Tuesday, which led it to lose 8,000 points, standing at 7,900 integers, after the President of the Government, Pedro Sánchez, announced two new temporary taxes banking and large energy companies.

The Spanish selective was weighed down, above all, by banking, which in some cases lost more than 10%: Sabadell left 12.5%, Bankinter, 10.45%, and CaixaBank, 10.11 %. Behind them were BBVA, which fell 6.43%, and Banco Santander, which lost 6.09% on the stock market. In the continuous market, Unicaja Banco also lost 6.89%.

The large energy companies present in the Ibex 35 also fell, although to a lesser extent, as the possibility of a new tax being approved had already been discounted in recent weeks. At 2:20 p.m., Repsol was down 4.49% on the stock market, Endesa 0.93%, Naturgy 0.85% and Iberdrola 0.44%, while Enagás lost 0.03%.

Specifically, Sánchez announced in the Debate on the State of the Nation the forthcoming approval of temporary taxes on financial entities and large energy companies to raise approximately 7,000 million euros in two years.

During his speech, Sánchez reported that the tax on “the dominant groups” in the electricity, gas and oil sectors will be in force during 2023 and 2024 and will seek to collect 2,000 million euros a year from the extraordinary profits of these companies in 2022 and 2023.

Likewise, it has announced a new “exceptional and temporary” tax aimed at “large financial entities that have already begun to benefit from the rise in interest rates.” This tax, he has explained, will have a duration of two years –on the years 2022 and 2023– and will seek to collect 1,500 million each year.

The new taxes announced by the head of the Executive are added to the minimum rate of 18% in the Corporation Tax that applies from this year to the banking and hydrocarbon companies. Likewise, financial entities are also subject to the Tax on Financial Transactions, known as the ‘Tobin tax’, which came into force last year.

Source: Europa Press

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