Since July 12, when the President of the Government announced the creation of a new tax on banks, statements from the academic, legal, and regulatory communities have followed, and various technical studies demonstrating the erroneous nature of the decision have been published. Specifically, the study conducted by the Institute of Economic Studies (IEE) on the new levy’s non-compliance with the Constitution and Community Law has been very clarifying.
The European Central Bank’s opinion was also relevant, highlighting the main risks of the new tax in the following aspects: the possibility of reducing the sector’s capacity to continue supporting the economy and financial stability itself, and its role as a transmitter of monetary policy at a crucial time for fighting inflation.
Providing certainty to banks is key in a context where war and inflation make the future unclear. For this reason, the creation of specific taxes on particular sectors generates insecurity that extends beyond the affected sector. This is especially true when they deviate from international norms, in circumstances where attracting investment is crucial for continued wealth creation. The best way to collect more taxes is for the economy to grow. And banks are fundamental to driving growth.
According to a recent PWC study, Spanish banks contributed 11.599 billion euros to public coffers last year, more than half through taxes borne. This represented 51% of pre-tax profits in Spain, far exceeding any other sector of our economy. For example, corporate tax payments account for 5.1% of the tax agency’s total revenue, which is greater than the sector’s own weight in GDP. Furthermore, a Spanish bank pays almost 10 percentage points more in taxes than its German or Italian equivalent.
This is a sector always willing to help and is fundamental for driving growth, already contributing high taxes. Therefore, neither the timing nor the fundamentals justify a new tax.
José Luis Martínez Campuzano, spokesperson for the Spanish Banking Association
