Spain’s Budget Passes Parliament with Most Tax Increases Intact

Spain’s governing coalition won parliamentary approval for its budget Thursday after agreeing to several concessions, including an amendment to scrap a planned diesel tax hike and a commitment to study broader tax reform next year.

The budget—only the second Spain has passed in five years amid a fractured and polarized Parliament—includes increases to corporation and income tax paid by the wealthiest taxpayers in Spain.

Voting by sections, Parliament approved each part of the bill with a majority of up to 188 votes in the 350-seat lower house, where the minority governing coalition relies on the support of smaller ...