March 5, 2021

softens the VAT increase on sugary drinks and increases funds for the Department


The Plenary of Congress has included, against the Government’s criteria, up to thirteen amendments by Esquerra Republicana and Junts to the 2021 General State Budget project, modifying the scope of the VAT increase on sugary drinks and increasing the funds dedicated to the Unit, among other issues, according to Europa Press.

The Government designs Budgets for 2021 to start reducing the expenditure and income gap with Europe

The Government designs Budgets for 2021 to start reducing the expenditure and income gap with Europe

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These modifications have been introduced in the first round of voting in the Plenary of Congress on the proposals of the groups to the Budgets. The amendments have prospered despite the vote against the PSOE and United We Can, which have added the support of the PNV and Nueva Canarias in the majority of votes, but have not been able to prevent the approval of these proposals from the pro-independence formations, backed by the PP, Vox, Ciudadanos and different minority parties.

And it is that the Government has come to face Republican Esquerra, EH-Bildu or PDeCAT, which in other votes have abstained. The PNV has voted with the PSOE and United We Can in all these votes, except to limit the so-called ‘sugar tax’, a proposal before which it has abstained, along with Bildu and Teruel Existe. In this vote, the PSOE and United We Can have been left alone with Más País-Equo.

These specific defeats, in any case, do not put at risk the approval this Thursday of the General Budgets of 2021, since the Government has tied the support of ERC, PNV, Bildu, PDeCAT and other parties until adding almost 190 deputies, very above the absolute majority.

Amendments approved

With the approval of the amendments, the opposition has managed to limit the scope of the VAT increase on sugary products, since the so-called ‘sugar tax’ will not apply to sweetened dairy products, and will also promote a fund for municipal public transport in 275 million euros.

Another amendment raises the endowment of the System for Autonomy and Care for Dependency by 566 million euros, which goes on to reach 2,600 million euros -the accounts already transferred 2,029 million to the Imserso for this care-, doubling the slightly more of 1,300 million that contemplate the last Budgets.

The amendments also promote temporary reductions of up to 50% in the royalties and income that Mercasa charges companies, modifications in the Corporation Tax for the deduction of investments in film and audiovisual productions and live shows, and the change in electrical power seasonal in the field, whose workers are also obliged to improve their pension by covering contribution gaps.

Another approved amendment enables the negotiation of salary improvements in the personnel of the Administration of Justice dependent on the Ministry of Justice and obliges the Government to review and recognize as quoted periods that appear as worked and that do not appear in the contribution career of Justice personnel .

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