October 24, 2020

The Government informs Brussels that it will enter 6,847 million more in 2021 with new taxes and the increase in VAT on sugary drinks


Spain is being the country hardest hit by the coronavirus health and economic crisis throughout the European Union. And this is reflected in the Government’s forecasts, with a fall of 11.2% at the end of the year, in addition to a 17% unemployment. That is why the European recovery fund is urgently needed, which has awarded Spain 140,000 million between grants (72,000) and loans (68,000). The Government trusts that a part of these transfers, up to 27,000 million, will arrive in 2021, although the fund still requires parliamentary procedures and evaluations of each project to be financed.

This has been transferred to the European Commission in its Budget Plan for 2021 this Thursday. If in the end that European money arrives, the Executive hopes to close 2021 with a GDP growth of 9.8%.

In any case, the Executive presents to Brussels “tax measures for a fairer and more progressive taxation” with which it hopes to collect an extra 6,847 million. And what are those taxes? “For example,” explains a note sent by the Ministry of Finance, “in 2021 the Tax on Certain Digital Services and the Tax on Financial Transactions will be applied, which were recently approved by Parliament and which will allow modernizing the tax system and adapting to the new economic reality. Next year environmental taxation will also be promoted, in line with the recommendations of the European Commission. In this context, the creation of the Tax on Single-use Plastic Containers is framed, which has already passed the process of public information “.

The document adds a tax increase promoted by Alberto Garzón’s Ministry of Consumption, which in Industry and Agriculture viewed with suspicion: “The increase in VAT on sugary and sweetened beverages from 10% to 21%, whose objective is to favor more habits healthy “.

The plan sent to the European Commission also includes “the draft Law on Prevention Measures and Fight against Tax Fraud that will strengthen the control of irregular practices associated with new technologies, combat the underground economy by lowering the limit of cash payments in the professional field and also to combat the tax avoidance of large multinationals to make a fairer tax system “.

Measures against COVID

The budget plan sent to Brussels includes the impact of the measures approved this year to fight the health and economic emergency of the pandemic.

Thus, the 16,000 million transfers for the autonomous communities are included. In addition, “measures were approved to support families and workers, as well as the most vulnerable groups and also companies worth 55,588 million euros in 2020”, explains the Treasury. Among these measures are ERTEs and the benefit for the cessation of activity of the self-employed, which has benefited 1.5 million self-employed workers.

To this must be added measures to alleviate tax and contribution burdens for companies and the self-employed – “with an impact of almost 1,000 million euros” -.

“Likewise, the Executive has also launched different lines of endorsements and guarantees worth 154,400 million euros to guarantee the viability of companies affected by the pandemic and, in the second instance, to finance investment projects that allow us to strengthen and expand our fabric productive “, states the Government:” All the measures approved by the Government to fight the pandemic and mitigate the crisis add up to 210,910 million euros in 2020. ”

16 week paternity leave

The document sent to the European Budgetary Commission includes the revaluation of pensions in 2021 “according to expected inflation” – although inflation is currently negative.

Likewise, the budget plan includes “the gradual increase in paternity leave from 12 to 16 weeks, allowing it to be equated with maternity leave.”

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