Spanish government ahead of July, the tax cut planned for 2016 – El Universal (Venezuela)

 EFE
 

Friday July 3, 2015 9:46 a.m.

Madrid .- The Spanish government will approve next week a reduction of income tax (PIT), which comes into force and this month although it was scheduled for 2016, and will involve an injection of EUR 1,500 million to the economy.

The anticipation of that tax cut takes place a few months after the legislative elections, scheduled for November, which has led the leftist opposition to criticize the Executive of the Popular Party (PP) therefore considered to be an electioneering measure , Efe reported.

The Deputy Prime Minister Soraya Saenz de Santamaria, justified the decision is that it is now “a good time” to take and there is “sufficient room” because we want to return to the Spanish fiscal effort made in previous years.

The Government believes that this reform over twenty million citizens and their families will notice the reduction since this July.

Santamaria explained that the deductions to employees going to back down, as they did last January “a foretaste of that tax cut.”

Ante the press, Economy Minister Luis de Guindos said that the advancement of the reduction of income tax to July 1 this year is “compatible” with the performance of the public deficit target of 4.2% of GDP by 2015.

Contrary to that opinion, the union of technicians of Finance warned of the technical difficulties in the advancement of the 2016 personal income tax cut to July 1 this year and warned also that can jeopardize compliance with the deficit target for 2015.

According to these technicians, technically it will be very difficult to apply the reduction of income tax from July 1 because there is no precedent that in the same year were applied two different scales of assessment, applied after last January.