High inflation is having a direct and undoubted effect on tax collection, which is at record highs and growing at dizzying rates.

And that increase is what the PP asks to be used to apply measures that relieve families.

How much is the Treasury earning thanks to inflation?

Income in homogeneous terms rose by 17.5% until July and is already close to 150,000 million in just seven months.

Without a doubt, the year will close with the highest collection in history.

Part of this increase is due to economic developments, but another part, as explained by the Tax Agency itself, is due to high inflation.

A clear example is VAT, a tax in which the increase in prices has a great impact and which grows more than 20% compared to last year.

The collection of Special taxes also picks up thanks to prices, with an advance in the accumulated of more than 5% even despite the reduction in the rate of the Electricity tax.

Without this measure, "which represents a loss of 1,163 million until July, growth would be 15.5%," explains the Treasury.

And what is the government doing with that income?

According to the Ministry of Finance, use it precisely for saving measures for families such as the reduction of the electricity tax, the discount on fuel or the benefits in the means of transport.

The Minister of Finance, María Jesús Montero, has defended on more than one occasion that the Executive of Pedro Sánchez has already applied the largest tax reduction in history, and that at the end of the year it will accumulate a reduction of 12,000 million euros only in the actions on the electricity bill.

Is it so?

According to the PP, no.

Or, at least, it considers that there is room for further action, as evidenced by the proposal to bring VAT on some basic foods to the super-reduced rate, that is, from 10% to 4%.

Is the Treasury going to do it?

It is unlikely.

First, because it is a measure of the PP.

Second, because it considers that the actions it has applied are having an effect.

And third, because the EU has recommended Spain on numerous occasions to progressively eliminate reduced rates, and this would go exactly in the opposite direction.

The Government, it is true, has ignored the European criterion on many occasions, but when its interests are aligned with Brussels, it does use this argument.

Conforms to The Trust Project criteria

Know more

  • Taxes

  • Articles Daniel Viaña