• According to the Bank of Spain, the big losers of the economic crisis of the coronavirus: women and young people under 35
  • Taxes. The Bank of Spain shows Pedro Sánchez the real key to raising income: raising VAT

"These figures should be approved with a high degree of international coordination. In a context in which some tax bases can be moved with relative ease between jurisdictions, it makes perfect sense to match these taxes to what is decided at the European level because that will maximize the collection capacity and minimize distortions ».

With these arguments, the Bank of Spain (BdE) shows its position on the approval of the so-called Google and Tobin rates in a very clear way, and asks the Government not to process both figures individually. That is, do not do just what you are already doing .

This is reflected in the 2019 annual report published yesterday by the body, and this is also stated by the general director of Economy and Statistics of the BdE itself, Óscar Arce, when questioned for it. The key, they insist, is that a unilateral approval can destroy the collection forecasts and make the figure fail in its objective, since the companies and even affected users could move to other European countries that do not include these taxes in their legislation. Relocate, in short . A warning very similar to the one made by the political forces that opposed the processing of the two figures that has already begun in Congress, and that was especially stressed by Citizens.

"The collection capacity will be conditioned, among other factors, by the degree of fiscal coordination in these areas at an international level", the Banco de España influences in the aforementioned document, adding that the lack of coordination may lead to the " appearance of competitive disadvantages and the relocation of certain tasks , with the consequent negative impact on the economic activity developed in our country and, therefore, on tax revenues.

The Government, however, has always rejected these warnings and has exposed the need to increase income as a fundamental reason for its approval, arguing that the crisis caused by the coronavirus choir has only intensified. According to his estimates, the financial transaction tax, which is levied with 0.2% on the purchase of shares of listed companies whose capitalization exceeds 1,000 million, will contribute 850 million annually. The figure on certain digital services will add almost 986 million, with which the Treasury expects them to add almost 1,800 million when they are fully active. But if the Bank of Spain's warnings are heeded, it seems difficult to reach those figures.

Future VAT increase

In its latest annual report, the BdE also refers to other fiscal measures that the government will inevitably have to carry out in the face of the crisis. Not immediately, he stresses, but yes when, starting next year, Spain begins the essential process of debt reduction and fiscal consolidation. And there, as Hernández de Cos anticipated last week in Congress, increasing VAT is the option he considers most attractive .

"The fiscal adjustment that the economy will have to make is going to be quantitatively very important," adds Arce, and "a tax measure that largely explains the difference in tax collection between Spain and Europe has to do with VAT." "And although the general rates are aligned, there is a category of goods that are reduced or super-reduced that dilute collection capacity," says the person in charge, also making clear the recommendation of the Bank of Spain to transfer many of those products to the general rate.

On the other hand, and also in the extensive report, the regulator notes that women and children under 35 are the big losers of the economic crisis. The reason: that these groups of workers are the most present in the so-called "social industries", branches which in turn are the "most affected".

According to the criteria of The Trust Project

Know more

  • Taxes
  • Google rate
  • Tobin rate

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