The Government finds itself in an increasingly delicate situation. The tax reform that he had begun to design weeks ago proved to be built on sandy foundations and collapsed on the afternoon and evening of this Monday. Now, after the setback experienced, the Executive has entered a crossroads in which it seems increasingly difficult to comply with the commitments made to Brussels. The first vice president and Minister of Finance, María Jesús Montero, has already made it clear on several occasions that Spain needs to increase the fiscal pressure to get closer to the European average and be able to reduce the levels of public deficit and debt without undertaking cuts in spending. However, the desperate vote to move forward with the fiscal plan that Parliament experienced, in which the increasing difficulty in reaching agreements is evident, complicates the Government’s room for maneuver.
After having been postponed on several occasions in recent days, the Finance Commission yesterday had to validate the opinion that would accompany the transposition of the European directive that imposes minimum taxation on multinationals, required by the European Commission. The Government has used this regulation to approve a type of tax reform in Spain with which to relaunch the 2025 budgets. Therefore, the bill has been completed with countless amendments on tax matters that have been negotiated by the PSOE and Sumar y coalition partners in parallel talks that have unfolded in recent weeks. However, at the moment of truth, when it was time to approve the definitive measures, everything has gone to hell. Faced with the real threat that the tax package would not go ahead, the Government has had no choice but to back away from its pact with the PNV and Junts to close a commitment to Bildu, ERC and BNG and thus make the tax on large companies permanent. energy companies. Thanks to this last-minute agreement, the commission has given the green light to an opinion that ratifies some of the amendments presented, eliminates others and leaves several of the most important ones to the risk of the next negotiations, which must be ratified in the next plenary session. Thursday. The desperate maneuver of the Executive anticipates a dog-eat-dog negotiation to approve the public accounts for 2025, which will be decisive to complete the legislature. Without being able to ensure the approval of major economic reforms, the Executive is looking into the political abyss.
The measures that are rejected
Bank. Although the Finance Commission has knocked down the amendment that proposed extending the extraordinary tax on financial entities for three years, an in extremis pact between the PSOE and BNG, Bildu and ERC has allowed the approval of the opinion that included the transactional amendment that It will be voted on in the plenary session next Thursday.
Energy. The extension of the extraordinary tax was not among the internal agreements of the Government or those signed by the PSOE with Junts. However, the left-wing pro-independence partners assured yesterday that they have agreed with the Executive that the figure be extended for at least a year in exchange for their support for the ruling. The Ministry of Finance, for its part, assures that “it maintains its agreement with Junts to not tax energy companies that maintain their effective investment commitment for decarbonization.”
Diesel. The PSOE agreed with the PNV and Junts on a tax increase to equate the taxation of non-professional diesel with gasoline. The Finance Commission has rejected the measure.
With friends. The PSOE and Sumar had proposed the end of the tax advantage of Listed Real Estate Investment Companies, known as socimis. Finally, the Finance Commission has rejected the measure.
Tourist flats. The coalition partners had also proposed the end of the VAT exemption for tourist homes to get ahead of the negotiations that are taking place in the European Union. This proposal to raise the tax to 21% also falls.
Luxury goods. The PSOE and Sumar put on the table a new tax on luxury goods, such as yachts, high-end cars and private jets. The measure has not seen the light of day in the Finance Commission either.
Insurance premiums. The deputies have also rejected the end of the exemption to private health insurance premiums, which affected more than 1.2 million citizens.
The measures that are approved
Minimum type of companies. A minimum corporate tax rate of 15% is set to transpose a community directive, as required by Brussels.
IRPF. The base savings rate is raised to 30% in the case of the highest incomes, starting at 300,000 euros per year.
Vapers. A tax on electronic cigarettes is approved to tax their nicotine and, in parallel, an increase in the tax on tobacco products is established.
Hydrocarbon fraud. The Finance Commission has validated an initiative proposed by the PNV to correct technical aspects that allow combating schemes in VAT on hydrocarbons.
Cristóbal Montoro’s corporate reform. The parties have supported the technical corrections in the corporate tax to ensure collection after the Constitutional Court’s blow to several of the reforms of the former PP Finance Minister for having abused the figure of the royal decree.
