Post by account_disabled on Feb 20, 2024 5:50:02 GMT -5
The negotiation between the partners of the government coalition to prepare the draft of the General State Budgets (PGE) is about to end, but there are still two aspects that keep the tug of war until the end. These are two tax increases that affect the main taxes collected in Spain: the Personal Income Tax (IRPF ) and the Value Added Tax (VAT). In the Government agreement signed between the Socialist Party and Podemos, it was detailed that throughout the legislature a fiscal restructuring would be carried out with an increase in personal income tax for high incomes.
The definition of who these high incomes are is now where the agreement for the 2021 PGE is entrenched. On the part of Podemos they want to maintain the conditions signed in the agreement Middle East Phone Number List which established that the increase was for those incomes that exceeded 130,000 euros per year. However, the Minister of Finance, María Jesús Montero, wants to limit the increase in the tax rate to incomes of more than 150,000 euros. If Montero's proposal is carried out, the first consequence would be that it would affect a smaller number of taxpayers. Only 0.5% would be affected, that is, 91,377 people , according to calculations by the Treasury technicians' unions, Gestha.
Read more: Expenditure ceiling, parliamentary support and support from Brussels: the 5 obstacles that the Government must overcome in order to approve the General State Budgets Goodbye to deductions in health and education? The second aspect that delays the agreement is an unexpected increase in VAT . Such an increase was not expected to be undertaken, however, intentions have changed since recently the Independent Authority for Fiscal Responsibility (Airef) will recommend eliminating tax exemptions and reductions for certain activities. Montero wants the VAT on health services and private education to stop having a reduced rate and be taxed at 21% . But according to 20minutos , the idea has detractors within the coalition , considering that it could end up affecting public health and education.