Spain raises environmental taxes to meet EU fiscal requirements
As per the new fiscal regulations set out by the EU, Spain has released plans to implement new environmental taxes in an attempt to meets its budgetary obligations. This will form a crucial part of the governments’ revised 2017 Spanish Budget.
The Spanish Government foresees the new charges will accumulate 500m euros surplus to the economy annually. The plan currently lacks specifics; however it does specify that the extra funds will be used to reduce carbon emissions.
Although the recently elected Government chose to keep the current corporate tax rate (25%), they will restrict many of the commercial tax deductions that currently many take advantage of. This will make up the majority of the 7bn euros in additional revenue the Government is looking to achieve.
Additionally, property values will be updated for immovable property tax, in order to further boost revenues. Spain's current deficit is forecast to reach 4.6% in 2017, and the country will be subject to fines by the EU if it fails reduce the deficit to 3% this year.
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