The Government refuses to raise taxes on diesel in this legislature

The diesel tax hike to equate its tax burden to that of gasoline, which was one of the first fiscal policy measures announced by the Government of Pedro Sánchez even in 2018, it will not be included in the Budget project for 2023, as announced this Friday the Minister of Finance, María Jesús Montero, and will therefore be left out of the fiscal action of the Executive, at least in this legislature. The argument raised by the main person in charge of the Government's fiscal policy is that the economic context is not adequate and it does not seem appropriate to make the taxation of this fuel more expensive when the Executive is subsidizing the cost of all fuels with 20 cents to alleviate the impact of power rise to families.

Montero's announcement postpones 'sine die' what has been one of the main flags of the green fiscal revolution to which the Government aspired. In fact, it was the first one that was put on the table already in 2018, within the 2019 Budget project that was never developed due to the rejection of the majority of Congress, as a figurehead of the Pedro Sánchez Executive's commitment to the environmental taxation. Then, the Ministry of Finance of María Jesús Montero put on the table a diesel tax increase of 3.8 cents per liter to close the tax gap of 11 cents per liter that separated it from gasoline.

Diesel would thus pay a hydrocarbon tax of 34.5 cents per liter, compared to the 30.7 cents that continue to be its tax burden today. For the owner of a vehicle with an average tank of 50 litres, the increase would have meant paying 2.3 euros more each time he passed by the gas station, VAT included. Per month, an average user who travels 15,000 kilometers per year will have to pay 3.45 euros more, and per year, 41.4. This increase, according to Treasury estimates, would mean raising an additional 500 million in two years.

The Government returned to the fray in the 2021 Budget project, but ended up renouncing the measure due to the rejection of its partners from the PNV and other formations such as Citizens. The measure, however, reappeared in the Recovery, Transformation and Resilience Plan of the Government, in which within the chapter on 'Reforms that contribute to the ecological transition' of Component 28, which brings together the measures to adapt the tax system to the reality of the 21st century, the equalization of the fiscal treatment of diesel and of gasoline in the Tax on Hydrocarbons.

The political commitment, backed both by the Minister of Finance and by the Third Vice President of the Government, Teresa Ribera, was not, however, actually reflected in the operating contract that transfers the specific commitments of the Government of Spain with the European Commission to receive European funds. , so it is not one of the milestones that Spain must meet to receive the funds.

The equalization of the tax treatment of diesel and gasoline has been a requirement of the European Commission to Spain for years.

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