Spain's Bold Tax Overhaul

Spanish lawmakers have approved new tax plans, extending a temporary levy on banks by three years and ensuring large companies' taxes comply with EU regulations. A coalition government agreement with Podemos aims to work on a permanent windfall tax on energy companies or extend the temporary one.

In a significant development, Spanish lawmakers on Thursday gave the green light to the government's newly proposed tax plans. These proposals include extending a temporary levy on the banking sector for another three years.

The decision also aims to ensure that taxes imposed on large corporations align with the European Union's regulatory framework. The move underscores Spain's commitment to fiscal responsibility while navigating EU guidelines.

A coalition led by the Socialist party, in collaboration with the far-left Podemos, unveiled plans to establish a permanent windfall tax on energy companies before the year concludes, or at a minimum, propose the continuation of the current temporary tax for an additional year.

(With inputs from agencies.)