The majority Popular Party of Prime Minister Mariano Rajoy pushed through an amendment to the legislation that hikes the levy to 7% from the 6% that had originally been envisaged in the austerity-racked nation.

The reforms approved by the Senate – Spain’s upper house – also include a levy on nuclear, large-scale hydropower and solar-thermal.

Senator Jesús Alique from the opposition Socialists condemned the new tax as "confiscatory".

But