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'Record' €200.9bn in taxes to be collected this year – similar to figures from 2007
09/04/2017
SPAIN'S tax authorities expect to claw back a record €200.9 billion this year – 7.9% more than in 2016, most of the increase being in company profit taxes.
According to minister for the treasury Cristóbal Montoro, a further 12.6% in commercial tax will be collected, or a rise of just under €24.4bn.
But this is still a long way off the amount collected in 2007, when companies paid €44.8bn in tax on their profits.
The overall figure brings the government to a tax income sum similar to that seen just before the start of the financial crisis, in 2007, when it earned €200.7bn.
These sums are net of the amounts which will be refunded to taxpayers in their annual declaration – this spring and summer, rebates which correspond with last year's tax paid are expected to be in region of €12bn.
Montoro says the country has been through a 'deep economic crisis' with five years of consecutive reductions in the GDP and 3.5 million jobs destroyed, forcing tax income down, but that now the economy is starting to recover, he has taken the decision to increase taxes on firms.
This will hit the majority of Spain's businesses fairly hard, given that over 70% of companies in the country are small or medium-sized firms, typically one-man bands or family-run affairs.
Montoro has also commented on how wages need to increase now the economy is improving and deflation has been reversed.
He says staff should not be paid salaries 'consistent with those of a country on the edge of recession' now that the economy is improving.
Inflation is at 1.5% at present, although Montoro has only given his own civil servants a 1% pay rise this year.
Most of this year's cash earnt by the government will be in income tax – just over €78bn, or 7.7% more than in 2016, and somewhat higher than the €72.6bn earnt in 2007.
IVA will bring in just under €67.5bn, or 7.3% more and 20.7% higher than the sum collected in 2007, due to top-rate IVA having gone up between 2010 and 2012 from 16% to 21%, and the middle band of 7% up to 10%, both in two stages.
Montoro says this year's budget is not aimed at cutting taxes, saying those of 2015 and 2016 say a 'very intense reduction' in income tax and IVA.
For the most part, the IVA reduction has not been seen by the ordinary consumer or worker, although retentions on self-employed earnings, pushed up from 15% to 21% overnight in 2012, dropped again to 15% in early 2016.
The income tax drop over the past two years meant €9.3bn less for the government, says Montoro.
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SPAIN'S tax authorities expect to claw back a record €200.9 billion this year – 7.9% more than in 2016, most of the increase being in company profit taxes.
According to minister for the treasury Cristóbal Montoro, a further 12.6% in commercial tax will be collected, or a rise of just under €24.4bn.
But this is still a long way off the amount collected in 2007, when companies paid €44.8bn in tax on their profits.
The overall figure brings the government to a tax income sum similar to that seen just before the start of the financial crisis, in 2007, when it earned €200.7bn.
These sums are net of the amounts which will be refunded to taxpayers in their annual declaration – this spring and summer, rebates which correspond with last year's tax paid are expected to be in region of €12bn.
Montoro says the country has been through a 'deep economic crisis' with five years of consecutive reductions in the GDP and 3.5 million jobs destroyed, forcing tax income down, but that now the economy is starting to recover, he has taken the decision to increase taxes on firms.
This will hit the majority of Spain's businesses fairly hard, given that over 70% of companies in the country are small or medium-sized firms, typically one-man bands or family-run affairs.
Montoro has also commented on how wages need to increase now the economy is improving and deflation has been reversed.
He says staff should not be paid salaries 'consistent with those of a country on the edge of recession' now that the economy is improving.
Inflation is at 1.5% at present, although Montoro has only given his own civil servants a 1% pay rise this year.
Most of this year's cash earnt by the government will be in income tax – just over €78bn, or 7.7% more than in 2016, and somewhat higher than the €72.6bn earnt in 2007.
IVA will bring in just under €67.5bn, or 7.3% more and 20.7% higher than the sum collected in 2007, due to top-rate IVA having gone up between 2010 and 2012 from 16% to 21%, and the middle band of 7% up to 10%, both in two stages.
Montoro says this year's budget is not aimed at cutting taxes, saying those of 2015 and 2016 say a 'very intense reduction' in income tax and IVA.
For the most part, the IVA reduction has not been seen by the ordinary consumer or worker, although retentions on self-employed earnings, pushed up from 15% to 21% overnight in 2012, dropped again to 15% in early 2016.
The income tax drop over the past two years meant €9.3bn less for the government, says Montoro.
Related Topics
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