Spain Sets Lofty Target for Environmental Tax
December 12, 2016 Taxation in Spain
Spain has released its revised budget plan for 2017, which included several new taxes aimed at lower the budget deficit enough to meet the goals set out for it by the European Commission.
In the budget plan it was stated that the government would reform the current system of environmental taxes, with a particular aim at reducing the country’s output of greenhouse gases.
While the plan did not set out exactly how the tax system would be reformed to achieve the government’s goal, it was stated that the changes are expected to bring in approximately EUR 500 million in extra tax revenues.
Spain is hoping to bring in an extra EUR 7.5 billion in extra tax revenues in order to meet its fiscal goals.
Alongside the environmental taxes, the budget plan also sets out a series of tax hikes on tobacco, alcohol, and sugar-sweetened drinks.
The government hopes that the measures will cumulate in a significant drop in the country’s deficit levels, with a forecast drop from 4.6 percent of GDP to 3.1 percent of GDP.