July 25, 2021

Spain is the second country in the EU that less taxes consumption and pollution

Spain is the second country in the EU that less taxes consumption and pollution


Spain is a country with reduced tax revenue in front of the countries of our surroundings and with lower rates to the work and to the consumption that the average of the EU and above in the rents of the capital. Spain had an implicit type of consumption (VAT and excise taxes, discounted the reductions and bonuses) of 15.8%, the lowest next to Bulgaria, of 30.9% to the incomes of work against 50% of the European average (it is the ninth country with a lower rate that depends fundamentally of the IRPF) and of 24% to the capital (the seventh one with greater load), according to the report Taxation Trends in the European Union of the European Commission, that has remembered today the General Council of Economists in its meeting point «Taxes in Spain»

With everything, Spain has raised less than the European average, 34.1% of the GDP compared to 38.9%, although where our country is the red lantern, next to Ireland, it is in theenvironmental protection, with 1.8% of GDP versus 2.4% on average. At the meeting held this morning, the president of the Institute of Economic Studies (linked to CEOE), José Luis Feito, and the former Socialist deputy, Juan Moscoso, debated. Both have differed on whether Spain should raise the tax burden, although there seems to be a consensus on the need to increase environmental taxation.

The low level of public revenue, in the words of the president of the economists, Valentín Pich, is due to the high level of unemployment and because a good part of the population obtains income so low that they do not pay. In fact, Pich has recalled that just over 30% of companies declare profits in the Corporation tax, through a positive liquid quota. This explains why the tax collected half of what it obtained in 2007, when it collected 4.8% of GDP (more than 40,000 million) compared to the current 2.3%, three tenths less than in the EU.

Precisely, the Government prepares a tax increase of Companies to large companies, to diesel and to IRPF of salaries and capital income of more than 130,000 euros.

«Low level of wages» vs high quotes

Moscoso has indicated for his part the «Low level of wages» and the elevated "submerged economy" of Spain as a factor causing their low level of income. Feito has emphasized the high social quotes that companies support, 8.2% of GDP, the highest octaves in the EU where on average 6.8% are paid. In the case of those paid by workers, the percentage is 3.2%, below the 5.3% of the continental average. In his words, this harms the productivity and labor costs that companies face, which damages employment.

Feito has opposed converging on public revenues with the EU before doing so on rent. «If I see that the rich smoke cigars and wear a hat and buy me a cigar and a hat, I'm not going to get richer but poorer », has opined.


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