(Bloomberg) -- Spain will impose an exceptional tax on banks as part of government attempts to mitigate the economic impact of the war in Ukraine and soaring inflation.

The country will put the new levy in place for two years with the aim of raising about 1.5 billion euros per year ($1.5 billion), Prime Minister Pedro Sanchez said in the state of the nation speech Tuesday in Madrid. 

Sanchez announced the new tax as part of a barrage of economic policies, including an increase in subsidies for transportation. He also said that a planned windfall profit tax on energy firms will raise about 2 billion euros a year over 10 years. 

Spain’s largest banks are Banco Santander SA, Caixabank SA and Banco Bilbao Vizcaya Argentaria SA. 

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