The Treasury benefits from inflation: it shoots up its income by 20% and marks a historical maximum in the midst of the crisis

• Crisis Montero rules out the tax reduction required by the PP to support the National Plan: "Lowering taxes is weakening the Welfare State"

High inflation benefits the Treasury in terms of tax revenue.

And sensitively.

It already did so in 2021, when tax collection reached its annual historical maximum, and it continues to do so in an even more marked way at the beginning of this year: in the months of January and February together,

.

In fact, it was something more, 21.4%, with which the total collection data

, a figure that had never been reached before in the first two months of the year.

That is, that in the midst of the inflationary crisis, with the invasion of Ukraine by Russia already underway and with the economy noticing the first ravages of the war, the

.

Both the Ministry of Finance and the Tax Agency stress that the strong increase is also related to the economic recovery.

And so it is.

But the effect of inflation is unquestionable and can be seen very clearly in VAT.

, already close to 20,000 million accumulated and staying very close to the figures provided by personal income tax.

The body that Jesús Gascón directs points out that, in addition to "the improvement in activity", "the acceleration of prices" is also key, as he states in the collection report that he published yesterday.

In this figure it is also important to bear in mind that there is a lag, and that the results are more linked to inflation in the last months of last year.

As soon as the further climb that the CPI is registering at the beginning of 2022 begins to be felt,

.

The inflationary component is also very notable in Taxes on

and are already close to 2,000 million euros collected in just two months.

The Tax Agency points out in this case that the Filomena effect must be taken into account in the comparison, but that inflation is raising prices and, therefore, income, it is so evident that the Government has already decreed a reduction of 20 cents .

The rise of 44% experienced by taxes on alcohol is also surprising, while the aforementioned Personal Income Tax grows somewhat less than 10% and Companies also register a "high" growth as a result of "lower returns".

"Weaken the Welfare State"

And despite all this, all these figures and the good progress of collection, the Government

to try to stop the loss of purchasing power suffered by the population.

The Minister of Finance, María Jesús Montero, also said it clearly yesterday, who in this way rejects the request that the PP has made to the Executive in exchange for supporting President Sánchez's National Plan.

Neither changes in VAT nor adapt personal income tax to inflation to avoid the hidden tax increase that cold progressivity entails.

«The Government does not share that the crisis can be addressed with cuts to citizens.

The slogan that everything is solved by lowering taxes

», Montero responded when asked about this point during the presentation of the budget execution figures for 2021. In these data, the Treasury announced that the deficit was reduced to 6.8% after widely exceeding 10% in 2020, and the minister added that Spain is "in a position" to drop below 5% this year.

For his part, the next president of the PP, Alberto Núñez Feijóo, asked Montero and the government as a whole to "

" his plan, to apply a "selective" tax cut and to comply with what was agreed at the conference of presidents held in La Palma.

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