Bloomberg News

Spain to Temporarily Raise Tax on Income, Savings, Large Homes

December 30, 2011

Dec. 30 (Bloomberg) -- Spanish Prime Minister Mariano Rajoy’s governemnt plans to temporarily raise tax on income, savings and high-value homes after the euro-region’s third- biggest budget deficit topped forecasts for this year.

The government will raise the levies for two years in a bid to move the deficit toward the euro-region limit of 3 percent of gross domestic product. The deficit this year will reach 8 percent, more than the 6 percent forecast by the outgoing government that Rajoy unseated in Nov. 20 general elections, said government spokeswoman Soraya Saenz de Santamaria at a press conference in Madrid.

To contact the reporter on this story: Angeline Benoit in Madrid at abenoit4@bloomberg.net

To contact the editor responsible for this story: Andrew Davis at abdavis@bloomberg.net


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