Spain to hike taxes on big companies and high earners in bid to reverse COVID-19 slump

The Spanish government has revealed proposals raise large companies and high earners in a bid to boost the economy following coronavirus lockdown.

According to a draft budget set to be approved by the cabinet on Tuesday, the funds will be used on   health care, education and infrastructure. 

The government’s financial plan will include increases in corporate and wealth taxes, as well as higher income taxes for the richest Spaniards, Prime Minister Pedro Sanchez and his deputy, Pablo Iglesias, said at a press conference before the cabinet meeting in Madrid.

The increased revenue will help fund higher salaries for public workers and for public pensions, as the Spanish economy faces recession following the coronavirus lockdown. 

Prime Minister Pedro Sanchez said: “This budget cannot be postponed. This budget is essential for the modernisation and recovery of our economy.”

If the minority government back the plan, this budget will be the first to be approved since 2018, and the first full-year budget since 2016. 

Every other year budgets got rolled over from year to year, for lack of a majority.