• Tax reform The great tax increase of Montero experts: raise VAT, gasoline and diesel and tax harmonization

The plan is still valid:

carry out a strong tax increase

, which will be supported mainly by the middle class and which will directly affect professionals such as carriers or farmers.

But the invasion of Ukraine by Russia is going to postpone the plans of the Minister of Finance, María Jesús Montero, who has modified her speech and what was going to be imminent, is now delayed until the “

medium term

”.

It was almost the first thing she said yesterday when she received the

White Paper on Tax Reform

prepared by the group of experts she appointed.

And she, from the Ministry itself, delves into that same speech, recalling the galloping inflation, energy prices and the need to establish an economic recovery that now looks even more weakened.

But once the situation is normalized -whatever that normality is now- the Treasury will proceed to apply the recommendations it considers appropriate of the 118 it has received.

And among those proposals, and as much as Montero has repeated the opposite on numerous occasions, there is a notable increase in taxes on the middle class.

This circumstance is evident in the

simplification of the Value Added Tax (VAT)

, something that Brussels has recommended on numerous occasions to reduce the collection deficit with respect to Spain and that experts also propose.

In fact, they make it clear that it not only has an impact on the middle classes but also among the workers, for which they consider that the progressive elimination of reduced rates should be accompanied by aid measures for low incomes.

Equally clear is that greater demand for average incomes in the environmental proposals that, as this newspaper advanced, are a fundamental part of the reform.

In fact, it is the only area in which specific tax increase figures are offered:

up to 15,023 million euros more

in taxes, including two reductions on electricity and a total of 14 tax increases.

Much of that remarkable figure comes from the tax on diesel and gasoline.

to both

Because, as explained by Xavier Lavandeira, a member of the group and one of the greatest experts in environmental taxation in Spain, first a rise in diesel is proposed and, in addition, a general increase in fuels.

"Proposal five advocates equalizing the excises applied to automotive gasoline and diesel", that is,

eliminating the bonus received by diesel

.

And proposal six points to a "general increase in the taxation of hydrocarbons."

"This proposal includes a revision of the taxation of hydrocarbons that translates into a

substantial increase in taxation on hydrocarbons

, in particular on natural gas and automotive fuels," says the text.

All this, of course, affects carriers who, in addition, will have to face more measures contained in environmental taxation.

For example, the proposal to establish "

taxes for the use of certain transport infrastructures

".

"Preferably", the document points out, "such taxes should take the form of payments related to the distance traveled through electronic devices, which currently exist in many EU states for both light and heavy vehicles."

For this action, experts estimate an increase in revenue of up to 1,400 million.

Add and continue.

The president of the group of experts, Jesús Ruiz-Huerta, at the press conference to present the document.EFE

In the case of farmers, the impact is twofold.

On the one hand, because a tax on

nitrogenous fertilizers

is proposed , which seeks to put an end to "the excessive and inefficient use" of these products that can "contaminate soil and water and cause significant impacts on various ecosystems and on human health" .

Its application would also contribute 279 million in collections.

And on the other hand, proposal four deals with the taxation of aviation, maritime and agricultural fuels, and proposes «

taxing agricultural diesel with a tax rate approximately 40% higher

than the rate currently applied in Spain».

Added to this is a

tax on diesel and fuel oil used in certain maritime navigation routes

, as well as the application of a minimum rate for kerosene used as fuel in aviation.

According to the document, "aviation currently generates important environmental externalities and the expected evolution of traffic makes the substitution of fossil fuel absolutely necessary", and these three measures on aviation fuel, maritime transport and agriculture would contribute up to 1,700 million.

The aeronautical sector is the object of one more specific action: the

creation of a tax on plane tickets

.

"This Committee recommends additional tax actions to incorporate environmental costs in airline tickets with the aim of moderating demand," states the document, which emphasizes that it seeks to "induce changes in behavior that respond to the internalization of all the costs of the air transport, favor the modal change in short journeys and promote the development and implementation in the sector of technologies that are compatible with the ecological transition".

In other words, discourage the use of aircraft on the shortest routes, a point that was also included in the already forgotten document

Spain 2050 by many.

and that was promoted by the also disappeared from the Government Iván Redondo.

Tax homogenization

Of course, the extensive document of the experts deals with the fiscal homogenization that Montero asked to examine, and the conclusions will undoubtedly be to the taste of the minister.

Jesús Ruiz-Huerta, president and also a member of the Alternative Foundation linked to the PSOE,

criticized "the drift" that has occurred in recent years and the "downward competition"

in the figures of Patrimony and Inheritance and Donations.

That is, he censored the rebates and bonuses that the communities led by the PP have addressed.

«

Tributes that are of great importance

are being emptied of content .

We understand that emptying must be avoided, and therefore minimum effective tax limits must be studied, ”he added, making it clear that they propose a minimum rate for all communities.

This is what Montero wanted.

In Ruiz-Huerta's opinion, applying this minimum rate is not denying the capacity that the Constitution grants in fiscal terms to the communities, which is what the Community of Madrid vehemently denounces.

And in anticipation of precisely this, the experts defend that from this ground, the regions maintain the capacity dictated by the Magna Carta.

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