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Spain Plans $9.5 Billion in Inflation Aid; Windfall Energy Tax

June 25, 2022, 1:13 PM

Spain plans to hand out an extra 9 billion euros ($9.5 billion) in new tax breaks and direct aid to soften the impact of soaring prices threatening the euro area’s fourth-largest economy.

Prime Minister Pedro Sanchez’s cabinet approved reducing the value added tax on power bills to 5% from 10% and handing out 200 euros to vulnerable workers. He said his government will work on new legislation to tax the windfall profits of power companies, starting next year.

“The tremendous uncertainty lingering over the world has led us to take these additional measures,” Sanchez said in a press briefing ...