The fiscal menu for the equator of the century that the Government includes in its “Spain 2050” plan includes a long myriad of objectives and tax increases with the goal of converging with the EU in tax revenues. The Executive wants tax collection to increase by eight points in thirty years: if in 2019 it was 35% of GDP, 7.2 points below the European average, it will climb to 37% in 2030, to 40% in 2040 and 43% in 2050, collect the document. A good part will come from environmental collection, which is expected to more than double: from 1.8% of current GDP to 2.6% in 2030, 4% in 2040 and 5% in 2050.
Lower the black economy to 10% of GDP
Along with this, the Executive’s plan is for the economy outside the official radar, now at 20% of GDP according to the document, to be 15% in 2030, 12% in 2040 and 10% in 2050, a path thought , in the words of the Executive to “reduce tax fraud and the weight of the underground economy hto put it, at least, in line with that of the most advanced countries of the EU-8». To do this, it raises reinforce the staff of the Tax Agency and exploit the possibilities of ‘Big Data’.
A car use tax
Regarding the convergence in tax collection with the EU and the fight against climate change, the Executive proposes creating a new tax on the average real use of the vehicle to replace other current fiscal figures such as the registration tax. «It is proposed to move from the current fiscal figures on the purchase, circulation and fuels, to an actual measured use tax of the vehicle that takes into account its characteristics: its weight, its power, its emissions of atmospheric pollutants and greenhouse gases “, the report emphasizes.
A new gabela that the Executive
I was already making progress in the Recovery Plan. Precisely, the Alternativas Foundation already proposed in 2019 the “Taxes on the use of the vehicle”, with “variable tax rates depending on the location, time of day and type of vehicle.”
Raise taxes on gasoline and diesel
It also opens the door to raising taxes on diesel and gasoline, by pointing out as one of the priorities «progressively raise tax rates on diesel and gasoline consumption until both are brought into line with the average EU-8 petrol tax rate. ‘ To do this, it projects “a scheme that anticipates and addresses the effects on economic activity and income distribution and a mechanism that periodically adjusts tax rates in inflation function».
More tax burden on alcohol and tobacco
But it is not the only tax increase contained in the document of more than 600 pages. Another of its red lines is “modify excise duties, raising tax rates on alcoholic beverages, tobacco and fuels derivatives of petroleum until they converge with those established in the main EU countries.
End the module regime
The Government also proposes a profound reform of the tax system, denouncing that «in Spain, the poorest people pay more taxes (in terms of their income) than those of the middle class, an effect that also occurs in other countries such as the United Kingdom or Ireland, and which is mainly due to the effect of social contributions and indirect taxes. To correct this situation, he proposes measures such as ending the module system in which 400,000 freelancers are now.
«From a criterion of horizontal equity, the current objective estimation systems by modules or coefficients in personal income tax, which do not have equivalents in the reference countries, should move towards taxation systems based on real income, maintaining simplicity and ease of management that they suppose. The digitization of tax management can contribute to this objective, “says the plan. The end of the module regime to gradually move towards a real income system was a goal long pursued by the Ministry of Finance that parked with the pandemic.
Harmonization upwards in Successions and Patrimony
Another of its pillars is to address property taxation to approve a harmonization of Assets and Successions. “The lack of coordination between the different autonomous communities, as well as the tax benefits introduced by them, however, notably limit their scope,” says the document, which then criticizes tax competition between regions.
«The role of the wealth tax and the inheritance and donation tax in the autonomous estates must be rethought to avoid strategies of undesirable tax competition, which undermine the collection and progressive scope of these taxes and the principle of equality that governs our country “, abounds. The Minister of Finance, María Jesús Montero, has called “Fiscal dumping” the
Heritage bonus made by Madrid, 100%, therefore it intends to approve a harmonization.