Economy minister: 'Income tax might be able to go down again'
Economy minister: 'Income tax might be able to go down again'
MINISTER for the economy Luis de Guindos says he 'hopes' the government will be able to reduce income tax 'if it is compatible with the reduction of the State deficit'.
Income tax was increased dramatically in September last year and will remain at the same level for 2013.
Self-employed workers saw their tax rising from 15 to 21 per cent overnight.
De Guindos assures that this will be one of the first elements to be reduced once the nation is back in the black, and has dismissed out of hand any likelihood of IVA rising again, despite the EU's insistence.
The minister believes Europe looks set to be more flexible about Spain paying back its debt, but says the deficit has now reduced and the economy is healthier now than last year.
He does not believe Spain will need to apply for an EU bail-out, but reveals that in 2012 'there were some delicate moments'.
De Guindos, who calls the IVA hike from 18 to 21 per cent – just two years after it had already gone up from 16 to 18 per cent – 'the lesser of the evils' applied by the government to reduce Spain's debt.
He remains convinced that the moves made by minister for taxation Cristóbal Montoro are 'excellent' and 'among the greatest successes of the government's economic policies'.
