The Treasury assumes a good part of the package of tax proposals that Sumar put on the table for the negotiation of the 2025 Budgets, and will eliminate the tax exemption for private insurance to which the tax on insurance premiums (IPS) will begin to be applied. in 8%. With this, the Government intends to earn some 750 million euros annually, in the midst of a battle with the insurance companies on account of the renewal of the Muface agreement.
Asisa, DKV and Adeslas slammed the door on the Government on November 5, by leaving the competition void and leaving – if it is not remedied – one and a half million civil servants without mutual insurance. The companies consider the offer launched insufficient, and demand -at least- an improvement of 100 million euros to bring positions closer together.
The agreement, signed on Monday by the coalition partners, tends to worsen the situation. He defends that the exemption enjoyed by private insurance “it has a clear regressive bias, fundamentally benefiting high-income individuals and families”. “Those who have the most will pay more,” said the second vice president, Yolanda Díaz, yesterday.
“We do not understand that they are talking about high incomes, when 30% of the population in Spain has private insurance,” defend sources from the sector. According to data from the employers’ association UnespaIn Spain there are 12.4 million people with a policy of this type. “These are people from very diverse socioeconomic profiles who do not consume public health services or do so in a much smaller way,” the employers’ association defended yesterday in a statement. The sector has already begun to make numbers.
Companies recognize that it will pass on the impact of the tax to their users. “This is going to make insurance more expensive,” they say. The average premium in Spain is between 38.3 and 89.7 euros. A price that – if the measure succeeds – will rise by 8%, causing many policyholders to withdraw. “An increase of 8% would cause many insured people to cancel their health policy,” fear the same sources. Added to this are the consequences that this will generate, not only on the figures of insurance companies, but also on public health itself. Insurance companies already predict that the flight of clients under the umbrella of public coverage “will worsen the current situation of collapse and waiting lists.” This could lead to oversized private healthcare, leaving “certain hospitals in situations of complicated financial sustainability,” they indicate. However, the measure is doomed to failure. The PNV confirmed yesterday that its group is not going to support the agreement to eliminate the tax exemption, since in Euskadi there are “many people” subscribed to these insurances.
Parliamentary imbalance
The tax reform draft must, however, have the support of the investiture bloc to continue with its processing. To achieve this, the PSOE will defend that its content adapts to the transposition of the European directive.. However, The text not only includes an increase in the taxation of private insurance, but also an increase in the maximum personal income tax rate on capital income.l, an increase in VAT to 21% on apartments for tourist use, the creation of environmental taxes on jets and luxury items, or the elimination of exemptions for real estate investment companies for which an elimination of the bonus is proposed 95% in the ITP and AJD. A catalog of measures that could also be rejected by Junts and the Basque nationalists.
Along the way there are other tax demands that Sumar transferred to Montero. The agreement does not include the elimination of the exemption from VAT payment for private education sought by Yolanda Díaz. The measure aspired to add 1,945 million to the annual income of the Tax Agency. Nor the attempt to apply a tax on the “excessive margins of large food companies”, which the group has been demanding for months.
It should be remembered that Spain is obliged to approve a tax reform before the end of the year. The Government committed to promoting the text within the structural fiscal plan that it sent to the European Commission in mid-October, and with which it aims to improve the ratio of income to GDP by 0.3 points between the years 2025 and 2031.
Moncloa hopes that Brussels will endorse the document sent a month ago, giving approval to the fiscal roadmap with which to guarantee compliance with European rules. Furthermore, the fifth disbursement of European funds, of 7,000 million, also depends on the reform.
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