The Constitutional Court has admitted the appeal of unconstitutionality presented by the PP against the increase in the Heritage tax included in the General Budgets of 2021 for processing this Tuesday. These Budgets have recovered said tribute as structural after its abolition in 2008 has been extended annually since its temporary reinstatement in 2013.
After admission for processing, the court of guarantees will now give a deadline for the parties’ allegations. The magistrate in charge of the first study of the case and the preparation of the draft judgment is Alfredo Montoya, professor of Labor Law and belonging to the conservative sector of the Constitutional Law.
The Budget Law, in addition to making said tax indefinite again, raises the marginal tax rate applicable to fortunes of more than 10 million euros from 2.5% to 3.5%. The leader of the PP, Pablo Casado, said when giving an account of the presentation of the PP appeal that “it makes no sense that a tax on the way to extinction worldwide becomes indefinite.”
The challenge also questions marginal rates “much higher than current interest rates”, which makes the tax payment greater than the yield of certain fortunes, which – argues the PP – violating the constitutional principle of economic capacity.
For these reasons, the PP based its appeal to the Constitutional Court demanding that it annul said measure. Ultimately, the challenge proposes that it is a confiscatory tax because it “subjects unreal, non-existent or fictitious wealth to tax.”
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