• Crisis The Bank of Spain knocks down the Government's complacency: "We are the great economy of the euro that has done the worst"

The Ministry of Finance will include the VAT reduction on

feminine hygiene products in next year's Budgets


And it will do so after having refused to include the measure in the abortion law promoted by the Minister for Equality, Irene Montero, and with the express rejection of the Bank of Spain.

The intention to eliminate the so-called pink rate,

lowering VAT from 10% to 4%

, was pointed out this Wednesday by the Minister of Finance, María Jesús Montero, upon her departure from Congress, and Ministry sources confirm that, indeed, that it is the intention.

They add that in this way the reduction will be applied earlier, since the accounts "

will come into force earlier

", and recall that it is a measure included in the agreement of the coalition government of PSOE and United We Can.

They also reject that there has been any veto

to the reduction, a point that has been denounced from the formation directed by Ione Belarra and, in any case, the Treasury and the Government will make the decision bypassing the advice of the Bank of Spain, the European Commission and even what the Executive itself has pointed out on several occasions.

"The movements have to be oriented towards

reducing the type of goods that are at the reduced rates

and bringing them to the normal rate", affirmed yesterday the General Director of Economy and Statistics of the Bank of Spain, Ángel Gavilán, in the presentation prior to the Annual Report that today has published the organism.

That is, what he considers is that all rates should be progressively increased, and therefore bringing these products to the 4% with which basic goods are taxed goes in the opposite direction.

"They represent a burden for tax collection and it is

an abnormality compared to the rest of European countries,

" Gavilán stressed, referring to the fact that in Europe there are many fewer products at these reduced rates, which is precisely what the Commission also points out when it recommends Spain to raise VAT and what the Government itself has pointed out on occasion to reject certain reductions in Value Added Tax.

Criticism of the 20 cent discount

In the same context of the Annual Report, the Bank of Spain is also critical of the reduction of 20 cents per liter of fuel applied by the Government to deal with the increase in the prices of diesel and gasoline.

The reason: that it

mainly benefits high incomes


"Preliminary estimates of the impact that the bonus of 20 cents per liter of fuel could have suggest that the inflation borne by lower-income households in said period could be reduced by 0.35 percentage points, a reduction that, in this case, would be less intense. than that experienced by households with higher income [of 0.61 percentage points], indicates the document that bears the signature of the governor, Pablo Hernández de Cos.

"The reduction of 20 cents

reduces the inflation of high incomes more

than in low incomes. Perhaps this measure was not as focused as it should be to serve the most vulnerable groups," Gavilán said.

This criticism, in fact, had already been pointed out from some economic spheres, although in no case by a body as relevant as the Bank of Spain.

And even in the Government and in the Ministry of Finance they were also and are aware that this measure carried the risk that, indeed, high incomes would benefit the most because they are the ones that make the greatest use of vehicles and refuel more frequently. extent.

However, in Moncloa and the Treasury they decided to apply this general reduction because it was

the fastest option to react to a moment of emergency


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