Spain Will Extend Bank Windfall Tax, Shelves Energy Levy (1)

Spain’s governing Socialist party reached an agreement with partners in parliament to extend a windfall tax on banks for three more years.

Plans for a similar levy on energy firms will be shelved.

The banking levy will now tax commission and interest margins and will be in place for three years starting in January, according to the draft proposal filed late Wednesday by the budget ministry, a copy of which was seen by Bloomberg News. The tax will apply on business in Spain for both local and foreign lenders, and will range from 1% to 6%.

According to César González-Bueno ...