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  • Energy island The EU accepts "a special treatment" for Spain and Portugal to deal with energy prices

The PP will not reveal whether or not it will support Pedro Sánchez's shock plan until it knows it and can "study" it.

He has the "maximum willingness" to support it, but he is very suspicious that among the measures of the royal decree that will be approved today there will be no additional tax reduction.

In the first place, because it is the star claim of the

popular

to alleviate the energy burden in the pockets of citizens.

And, secondly, because it is something to which the President of the Government had committed himself at the

Conference of Presidents

in

La Palma

, precisely at the request of Alberto Núñez Feijóo.

Does the support of the PP move away from the package of measures of the Executive?

Yes, but not definitively, because if there is a tax cut and a cut in public spending, the main opposition party would support it, according to the sources consulted.

"What we ask the Government is to include tax cuts and all the necessary aid in the text, and to be the first to tighten its belt," said Cuca Gamarra, spokesperson for the PP in Congress.

Those would be, obviously, conditions that would favor the immediate "yes" to the validation of the decree.

"We are here to discuss and incorporate more measures, but he promised to lower taxes and that reduction must be reflected in the royal decree," he said at a press conference.

“Fulfilling what was promised is important to begin with, but we do not condition it,” he added.

Sánchez advanced yesterday a bonus of 20 cents per liter for fuel, a limit of 2% to the increase in rents, an increase of 15% of the minimum vital income and 10,000 million in loans, among other measures, but without any tax reduction new that relieves the taxpayer.

The plan only contemplates lengthening the reductions in the electricity bill that have already been in force since last year: a reduced VAT, the

special tax on Electricity

at 0.5% and the suspension of the

tax on Electricity Generation

.

If there are additional fiscal measures and spending cuts, the PP will support the plan

There will be no reduction in

VAT

on fuel, modifications to the Tax on Hydrocarbons or actions on

personal income tax

to tackle the undeniable loss of purchasing power that the population is suffering, as the PP demands.

On the first, from the Treasury they point out that fuels "are not among the goods that can be carried at the minimum rate", and that to do so it would be necessary to skip the European rules.

Poland

, however, did, and has not received any sanctions or reprimands from Brussels.

In

Europe

, given the current exceptional moment, they preferred to look the other way.

But the Treasury and the Economy add that lowering the VAT does not guarantee that the price of fuel will moderate.

Something similar is pointed out with regard to the Hydrocarbons Tax, a figure that is at the minimum rate of what the European directive allows and for which it would be necessary to skip the European regulations.

At first, the Executive did affirm that this option was the most viable, but last week they began to change their discourse.

Treasury assures that it will not lower personal income tax or taxes on energy

And about the income tax reductions, the Treasury directly considers it out of any possibility or approach.

Nor has it been discussed, they add, nor is it going to contemplate adapting this tax to inflation despite the fact that, according to some calculations, this would avoid a hidden tax increase of up to 4,000 million.

Feijóo complained yesterday that Bolaños gave "very little information" to Gamarra -who unsuccessfully asked him for the draft of the decree- and criticized that "the agreements are not fulfilled", in reference to the tax cut.

"We have to keep waiting for it to be explained to us what is going to be done," he said.

The PP will assess its response when it knows the government's plan, but "at this time" it can only judge that "when problems accumulate, they increase."

And I wouldn't support adding to the problems.

The PNV spokesman, Aitor Esteban, also complained that the government did not tell him anything specific: "Strictly that: contact."

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Know more

  • PP

  • personal income tax

  • Cuca Gamarra

  • Alberto Nunez Feijoo

  • Pedro Sanchez

  • Poland

  • Europe

  • GNP

  • Aitor Esteban

  • Taxes

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