Spain wants to temporarily finance the fight against inflation with a tax on the wealthy

Dhe Spanish government wants to temporarily additionally tax the richest one percent of the population starting next year in order to finance measures to combat inflation. It is important that "we can finance the aid" set up to support the "middle class and workers," Finance Minister María Jesús Montero told La Sexta television on Thursday.

The government will levy a two-year tax on Spain's "great fortunes," which affect "no more than one percent" of the population, Montero said.

Inflation of 10.4 percent

"When we talk about rich people, we are talking about millionaires," added the minister. She did not provide any information on the tax rate or tax revenue.

The Spanish government under the Socialist Prime Minister Pedro Sanchez had already presented a bill in July to introduce a temporary tax for banks and energy suppliers to finance measures to lower the cost of living.

Spain is also struggling with rising inflation as a result of the corona pandemic and the war in Ukraine. The inflation rate has been in the double digits since June and reached 10.4 percent in August. This means that it is higher than it has been since the mid-1980s.

The government has taken several measures to relieve citizens in the face of rising prices. These include free public transport, student grants and subsidized petrol.

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