Spain proposes 6% umbrella tax on all power generation methods

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Gloom pervaded the Spanish solar industry when minister of industry, energy and tourism José Manuel Soria’s 19% tax on renewables receiving a FiT was announced in July to end the tariff deficit of US$30 billion. However, the cabinet has now launched a draft umbrella tax of 6% payable by all energy suppliers, irrespective of power generation method, lifting the mood a little.

The government will be taxing natural gas suppliers to generate €804 million, for power generation with coal €268 million and for oil €38 million. The nuclear taxes are intended to produce €269 million between 2013 and 2015. Altogether, the government is hoping that the taxes could raise an extra €2,700 million.

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A bump in revenue is further expected from the sale of carbon dioxide allowances of €450 million.

Of course, these reforms are subject to change as the reforms still need to be approved by parliament

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