Spain Plans to Cut Tax
February 3, 2014 Taxation in Spain
MADRID – Spain will reform the national tax system, giving room to cut taxes within years.
Tax rates in Spain will be cut over the next two years, and, at the same time, new jobs will be created, while economic growth increases, according to information given by the Prime Minister of Spain Mariano Rajoy in speech delivered on February 2nd at a convention of the Popular Party.
Presenting his speech to the members of the congress of the ruling national party, the Prime Minister claimed that the tax cuts would be made possible by the implementation of an extensive reform of the tax system, intended on making tax regulations simpler, straight forward and fair.
According to Mariano Rajoy, the potential reforms will be begin to be implemented in the very near future, and the changes will significantly improve the economic and fiscal position of the country, actively serving to “…reactivate the economic system and reactive saving.”
According to the government’s current plans, if the positive effects of the reform are reached, then the the country will be able to cut personal income taxes as early as 2015, with several more reductions planned for the following years.
In the wake of the Prime Minister’s speech, some experts have already suggest that the promise of future tax cuts was given to appease the unrest brewing in the country over the government’s decision to hike the rate of VAT and income tax over the last two years.
Photo by: Esperanza Aguirre Gil de Biedma