“As has happened in the energy and banking taxes(currently in process at the Congress), we will work on a temporary formula and later the circumstances will say if it is necessary or not to extend it”, he said after the parliamentary debate on the suspension of the fiscal rules and the spending ceiling.
Asked when this tax increase will begin to apply, Montero said that “at least, it will be fundamentally linked to the entry into force on January 1 of all tax obligations”, and depending on the parliamentary process that follows .
“We will have to see the formula, not everything can go in the Budget Law“, clarified the minister. In Spain, the General State Budget Law may include modifications to existing tax figures, but not contemplate the creation of a new tax.
A way out of the dispute with the regions
The creation of a new tax on large fortunes is the way in which the Pedro Sánchez government will circumvent the conflict over the tax on wealth, which is managed by the communities and has become the center of a political battle after Andalusia, Madrid Y Murcia they deleted it.
In his speech in Congress, Montero criticized Murcia for following Madrid’s example by giving that “tax gift“in a community that occupies the last positions of health or educational investmentsomething that he considers “hard to admit at a time of crisis in which citizens are having such a bad time”.
The current wealth tax taxes the possession of assets, such as furniture, shares or bank accounts, above 700,000 euros.
In Spain, the communities are free to apply deductions and bonuses in the taxes that they have assigned in the exercise of their fiscal autonomy, the newspaper El País recalled.
Madrid, governed by the conservative People’s Party (PP), was the first community to discount this tax at 100%. Shortly after, Andalusia joined this line of action and Murcia announced that it plans to do so. Both communities are also governed by the PP.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
