• Coronavirus. Sánchez acknowledges that Spain will not overcome the economic crisis until at least 2023
  • Economic crisis.The Sánchez government is the only one among the great European powers that wants to raise taxes

Pedro Sánchez's government has decided to delay the "structural tax reform" it wants to carry out, and with which it intends to equalize the pressure of Spain with the European average. Eliminate those about seven points of Gross Domestic Product (GDP) to which the Minister of Finance, María Jesús Montero, always alludes and, in short, apply a progressive increase of up to 70,000 million euros. But the fact that this strong increase has been postponed until the economy recovers pre-coronavirus levels, as Sánchez stated last Tuesday, does not mean that tax increases will not be applied. Not at all .

The president himself indicated in that same appearance, after the meeting of the Council of Ministers, that the decisions of his Executive will be guided by the agreement signed by PSOE and Podemos, and sources from the Ministry of Finance confirm that yes, the objective is to include the fiscal measures contained in that document in the next Budgets. That is, the tax increases that were already included in the successive failed projects of accounts .

For example, the imposition of a minimum rate for corporation tax of 15%, which would reach 18% in the case of financial entities and hydrocarbon companies. In addition, "increase the tax rates by two points on the general basis for taxpayers with incomes above 130,000 euros and four points for the part that exceeds 300,000 euros."

Also included is what the Executive calls as "new green taxation", which means an increase in the tax on diesel and which, according to the calculations of the Treasury, would provide an income of 670 million euros per year. And of course, the creation of the so-called Tobin Tax and Google Tax . In fact, these figures are already in the processing phase and Sánchez also cited them during his review of the political and economic course. What is more, he stated that in the case of the tax on certain digital services, it had "been coordinated with our partners in the European Union", something that has not been exactly the case.

To this should be added a possible fiscal harmonization between communities . This point is not expressly included in the Government agreement, but Montero has stated on numerous occasions that it is one of its objectives, since it could thus end the " fiscal dumping " which, in his opinion, is mainly incurred by the Community of Madrid . And, on the other hand, what seems discarded is the tax on large fortunes that Podemos has wanted to introduce and that the Minister of Finance has rejected on more than one occasion, pointing out that the figure of Heritage already exists.

Tax cut in Europe

These plans of the Government of Spain contrasted greatly with what the rest of the European powers have proposed . Germany, Italy and France, as well as Great Britain, have implemented tax cuts in different ways: VAT or personal income tax reductions, specific actions in favor of tourism or tax relief for companies.

On the other hand, the Sánchez Executive has not proposed actions of this type, which have been actively demanded by the opposition and the businessmen. So much so that the president of the CEOE, Antonio Garamendi, told the president in Moncloa itself that "this is not the time" to raise taxes .

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Know more

  • Coronavirus
  • Covid 19
  • Taxes

Economic crisis The Sánchez government is the only one among the great European powers that wants to raise taxes

Health More than 57% of patients hospitalized for Covid-19 have developed any neurological symptoms

PandemicThe King asks to overcome the coronavirus crisis with "respect and understanding"

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