January 19, 2021

Companies will pay two thirds of the 5,678 million that the government expects to raise with the tax increase

Companies will pay two thirds of the 5,678 million that the government expects to raise with the tax increase


The Government of Pedro Sanchez quantified this Monday in 4.489 million euros the income that it expects to raise in 2019 thanks to the new taxes and tax modifications agreed with Unidos Podemos, among which the increase of the IRPF for very high rents, the suppression of bonuses stand out in the Corporation Tax, the change of the Property Tax and the new taxes on financial transactions or digital services.

This was explained by the Minister of Finance, María Jesús Montero, in the press conference after the Council of Ministers that reviewed the macroeconomic table foreseen by the new Executive for 2019 and that throughout today will be sent to the European Commission for analysis and supervision.

In an appearance together with the Minister of Economy, Nadia Calviño, and the Government spokesperson and Minister of Education, Isabel Celaá, Montero encrypted 5.678 million euros the collection that he expects to obtain thanks to the measures that Pedro Sánchez and Pablo Iglesias signed last Thursday in their Budget agreement, although it indicated that in the accounts of the State for 2019 the income will be limited to 4.489 million.

A fiscal hacking of 7.240 million euros

Companies, the most affected

Montero enumerated this income by concepts, of which around two thirds of the total will come from the companies: 1,776 million thanks to the limitation of exemptions and establishment of a minimum rate in the Corporation Tax, 850 million thanks to the new tax on financial transactions and 1.2 billion for the new tax on digital services, known as the "Tobin Tax".

Higher income

The rest of the new expected revenues will come mainly from raising taxes to higher incomes: 328 million for the increase in income tax for income of more than 130,000 euros and 339 for the change of the wealth tax for those who declare more than 10 million euros

Finally, there is a game of 670 million through a new green taxation

In addition, the minister highlighted the contribution she hopes to achieve through the fight against fraud, especially with three measures such as the limitation of cash pacts to 1,000 euros when one of the parties is a company (218 million), reinforce the list of defaulters (110 million) and international measures against fraud (500 millions).

He also quantified the negative contribution that some of the measures agreed upon by Sánchez and Iglesias will have on public accounts because they entail a decrease in revenues for the State. In this sense, he spoke of 260 million less due to the reduction of taxes for SMEs, 35 million less due to the reduction of VAT for veterinary services and 18 million less due to the reduction of VAT for feminine products.

Along with these data, the finance minister explained that the cost of the social measures contemplated in the same budget agreement between PSOE and Unidos Podemos will entail an expense of 5,098 million euros, although its impact on the General State Budget of 2019 it will be limited to 1,992 million.

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