MADRID, July 4 Spain on Friday said it would
introduce a blanket taxation rate of 0.03 percent on all bank
account deposits, in a move aimed at harmonising regional tax
regimes and generating revenues for the country's cash-strapped
The regulation, which could bring around 400 million euros
($546 million) to the state coffers based on total deposits
worth 1.4 trillion euros, had been tipped as a possible
sweetener for the regions days after tough deficit limits for
this year and next were set by the central government.
Deputy Prime Minister Soraya Saenz de Santamaria announced
the move at a news conference following a weekly cabinet
Spain is aiming for an end-of-year deficit of 5.5 percent
after ending 2013 with a deficit of 6.6 percent of gross
domestic product, just short of its 6.5 percent target. The
regions have been set a deficit limit of 1 percent of GDP.
The government had last year fixed a zero percent tax rate
on deposits across the 17 autonomous communities to prevent some
of them charging their own rates, but never ruled out raising
the taxation level.
The country has one of the lowest tax takes in the European
Union after a burst property bubble crippled the construction
sector, one of the largest contributors to government coffers.
Madrid passed in June a blueprint for tax reform which aims
to cut income and corporate taxes to stimulate consumer demand
and investment in the midst of a nascent economic recovery.
($1 = 0.7331 Euros)
(Reporting by Paul Day; Editing by Julien Toyer and Hugh