The Budgets of Sanchez expect to raise 20,000 million with the massive rise in taxes

The Government of Pedro Sanchez has approved in the Council of Ministers the General Budgets of the State of 2019, in which it foresees that tax revenues will shoot up to 20,000 thousand


Macroeconomy

The Minister of Economy, Nadia Calviño, the Finance Minister, María Jesús Montero, and the Executive Spokesperson, Isabel Celaa. EFE

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The Government of Pedro Sanchez has approved in the Council of Ministers the General Budgets of the State of 2019, in which it foresees that tax revenues will shoot 20,000 million euros . This strong increase is due, to a large extent, to the massive increase in taxes that the Ministry of Finance wants to carry out and that will affect practically all of the tax figures

In the press conference after the Council of Ministers, the Minister of Finance, María Jesús Montero, wanted to emphasize that the largest increase will occur in the Corporation Tax since, by percentage, the income from this figure will grow by 14%. However, in total terms, income tax and VAT are the figures that will contribute the most funds: around 12,000 million euros.

Specifically, through IRPF the State will enter 5% more and the increase is due to the rise in the tax on higher incomes but also, as Montero has recognized, that the increase in wages will cause also the average income contribute more through this figure. On the other hand, income from value added tax will increase by 11%.

On the other hand, special taxes will contribute some 2,500 million euros more. At this point will have a direct impact the increase in the tax that taxes the price of diesel, which according to the data presented will raise about 670 million . Montero explained, as he has done on other occasions, that the impact for an average driver will be about 3 euros per month and that the entry into force will occur when the law that will articulate the increase is approved.

Growth and employment

The government accounts, which will be presented at the Congress next Monday, also include the new macroeconomic forecasts. As yesterday the Minister of Economy, Nadia Calviño, the Executive has lowered for the second time in three months the official forecast of growth for this year. The new figure is 2.2%, one tenth less than the figure already corrected in October. In terms of employment, Calviño has also stated that the estimate is that between 2018 and 2019 the number of unemployed will be reduced by 800,000 people.

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REF: https://www.elmundo.es/economia/macroeconomia/2019/01/11/5c389b8b21efa0d1688b469d.html