Sánchez’s tax reform will return to Congress with tax cuts from the PP and with a wink from Junts

The tax reform designed by the Government of Pedro Sánchez will return to Congress this Thursday with changes introduced by the PP and only two by Junts. But above all, it will come with tax reductions proposed by the popular ones and with the wink of the post-convergents, who have abstained from all the changes introduced by the PP during the plenary session of the Senate this Tuesday and with the only abstention of PNV at the energy tax. In this way, the Government’s partners give hope to the main force of the opposition two days before the law reaches its final processing and, predictably, the Government will try to lift all the amendments that have included those of Alberto Núñez Feijóo with its absolute majority in the Upper House.

However, the tax reform that the PSOE and Sumar had agreed upon with their partners will once again be subject to a debate that could open wounds between them. Those from Junts have abstained from the fifteen amendments introduced by the PP last week without the option of debate. With this, Carles Puigdemont’s people have chosen not to support the PSOE’s request to return to the original text that emanated from Congress, eliminating all the changes made by the PP in the Senate. Therefore, Junts leaves in the air the possibility of supporting them this Thursday in Congress when the law reaches its final processing.

The amendments introduced by the PP include the direct help to young people between 18 and 35 years old, through measures such as the gradual exemption from personal income tax to allocate it to housing, entrepreneurship, training or births, redirecting the collection of 3,000 million euros in banking tax in aid for mortgages or to build affordable housing that allows access to young people to a home or the reduction in the corporate rate for SMEs is done from 2025 automatically and without extending it for three years.

Also for the affected by DANA, In the tax reform, exemption from personal income tax and donations for aid to those affected are introduced and “so that the Government does not benefit from the DANA tragedy”, in addition to VAT type 0 for the change of vehicle and repair of the house , as well as the extension to 2025 of the IBI and IAE exemption.

Those of PNV have initially threatened to support the PP amendments aimed at helping the victims of DANA. However, they later backed out, claiming that they would have no future. “The most reasonable thing is that they were included in the processing of the royal decrees as a bill, so that they are truly real measures, of real application and do not generate expectations with measures that cannot be materialized.” Furthermore, he recalled that his group votes “in coherence with the agreements reached with the Government”, that is, that it remains faithful to its pacts with the PSOE.

In your case, yes They have abstained from the PP amendment that repeals article 1 of the law that regulates energy and banking taxes which creates the temporary solidarity tax for large fortunes and modifies certain tax regulations.

The PP, for its part, has supported two of the three amendments presented by Junts. The first, which the PSOE has also supported, proposes that they have the right to a bonus of 100% of the business fee for common contingencies, clubs, associations or sports entities non-profit professionals by workers at their service who act as trainers or monitors dedicated to the training, preparation or training of people under eighteen years of age.

The second amendment that the PP has supported, in this case the PSOE has voted against, asks to include the fermented milks within the essential food group which should be taxed in the same reduced VAT category (4%) as other essential foods such as fruits, vegetables, legumes, bread, eggs or milk. Once the process in the Upper House has been completed, the text of the tax reform returns to the Lower House for final approval.