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Spain threatens tax on HFCs

SPAIN: A proposal by Spain's Ministry of Finance to impose a special tax on HFCs could increase the price of refrigerant by almost eight-fold in an economy still struggling to recover following last year's European bail-out.
Spain threatens tax on HFCs
The fluorocarbon tax is expected to raise Euro340m and forms part of a number of tax revisions which includes tax increases on alcohol and tobacco and the elimination of deductions to large corporate companies. In total Euro4.7bn per year is expected to be raised in a country where the black economy accounts for 20% of its GDP - second only in Europe to Italy's 21%.

According to the Spanish website El Confidencial, industry associations held emergency meetings last week over the new tax which could apply a tax as high as Euro76/ kg.

The special tax on fluorinated greenhouse gases could enter into force in 2014.

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