Taxes set to rocket with government fiscal reform
Monday, December 16, 2013 @ 10:12 AM
THE Spanish government's fiscal reform will include lower income tax, fewer products and services on lower-rate IVA of four and 10 per cent and more on 21 per cent, and higher taxes on petrol, diesel and roll-your-own tobacco.
New 'environmental' taxes and fewer exemptions and discounts on company taxes will 'help to limit the damage' caused by decreasing IRPF, or income tax, says treasury minister Cristóbal Montoro, who claims additional duties will be applied to 'those areas which least affect economic activity' in the country.
The European Commission had already ordered Spain to eradicate numerous aspects against which companies and the general public can offset their taxes – such as ownership of a main home – as well as reducing the number of items which attract lower-rate IVA and applying new taxes in areas which affect the environment, together with increasing the proportion of indirect taxes 'most favourable to growth' and fighting against fraud and tax evasion.
Read more at thinkSPAIN.com