The largest tax cut in democracy


Greater than any government has ever done before.

This is how the Minister of Finance, María Jesús Montero, defines the tax reduction that her ministry and, therefore, the Executive of Pedro Sánchez has applied to the electricity bill.

"We are talking about 7,000 million, as of June 30, that have stopped entering the public coffers. And if the measure is extended until the end of the year, we are talking about 12,000 million. I would say that it

is the most important tax reduction that a government has ever undertaken

. We are not talking about an adjustment measure. We are talking about a measure with a very important impact", said Montero, before participating in the presentation of the solidarity medal with Ukraine produced at the National Currency and Stamp Factory.

The minister responded in this way when asked about the possibility of deflating the personal income tax rate in its lowest sections, which was what the PP proposed and that, yesterday, the former socialist minister Jordi Sevilla stated that it would be convenient to apply.

Montero has once again completely ruled out this option.

"It is the best way we have believed that we can combat inflation [with the reduction on the electricity bill], as well as with the gasoline discount. I think it is more convenient to give direct aid to products that are increasing prices and lower selectively taxation than not doing it in a general way", Montero stressed.

Regarding the latter, the minister referred to the words of President Sánchez and insisted that they are working to

extend the reductions

on fuel for all users for another three months.

With his words, moreover, Montero totally rejects the accusations that he has tightened fiscal policy.

And it is certainly true that he has carried out a significant tax reduction, although it is also true that he has been forced by exceptional circumstances and that he continues to aspire to a profound tax reform that will raise tax revenues very considerably.

Negotiation with officials

The also responsible for Public Function has advanced that the Ministry will sit down "soon" to negotiate the salary increase of civil servants, and that the intention is to address a multi-year plan as requested by the unions.

"We want to agree with the unions on

a wage increase for the next three years

," Montero pointed out.

This is something that the previous Minister of Finance and Public Administration, Cristóbal Montoro, already agreed to, and that public workers demand in order to have greater stability.

In addition, the unions denounce that since the arrival of Pedro Sánchez in Moncloa there has been no salary negotiation.

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