Bank of Spain asks government for plan to increase ‘green’ tax: “There is a big difference in growth”

environmental taxation

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He says that environmental taxation is “basic” in the ecological transition process and points out that there is already a document in place for the work to begin: white paper of Montero experts

Governor of the Bank of Spain
The Governor of the Bank of Spain, Pablo Hernández de Cos, and the Vice President of Economic Affairs, Nadia Calvio.EFE
  • tax reform Montero experts’ great tax hike: increase VAT, gasoline and diesel and tax reconciliation

The Bank of Spain believes that “environmental taxation is basic”, that in Spain it is “consistently” above the EU average in terms of collections, and that “plenty of room to generate revenue“In this area. And for all this, he asks the government to raise taxes verdes,

Not immediately, given that the economy is currently facing the consequences of the war, recovery from the crisis due to COVID is still far away and fuel prices are at record highs. But in the medium term, that is, when these uncertainties start to fade away, and For this reason, he believes that it is now necessary to characterize a credible plan. Y recoverable.

Something similar it has been demanding for years in terms of debt and fiscal consolidation. In fact, this increase in environmental data must be in the organism’s understanding of that process. “We mark a few lines that should be basic: It is necessary to increase collections and improve the design of environmental taxation“, in a previous presentation of the document, emphasized yesterday the Director General of Economy and Statistics of the Bank of Spain, NGL Gavillán Spanish economy facing climate challenge which is part of the annual report of the organization.

Gavilan also pointed out that there is already a lot of useful previous work to do in formulating a fiscal growth plan: white paper on tax reformNamely, the report of the Group of Experts of the Minister of Finance, Maria Jesus Monteiro, which he delivered just a week after Russia invaded Ukraine.

The war waged by Putin’s movement crippled the tax reform that Monteiro has pursued since taking over the Treasury portfolio. And the government’s political complexities, as well as surveys, have already cast doubt on the ministry that the measure could ever be taken.

But at the Bank of Spain they are clear in their desire that the white paper will be used to enforce an increase in environmental taxes, and what is included in that document is a very relevant increase. For example, a tax on diesel and gasoline with which to enter up to 6,850 million euros; payment for the use of road infrastructure to receive an additional 1,400 million; or a set of actions, including the two already mentioned, To increase the collection to a maximum of 15,000 million,

With regard to fuel in particular, the Bank of Spain has emphasized that “despite taxation on hydrocarbons in Spain being lower than in other countries, tax rates have not increased in real terms in recent years.” “Since 1995, the nominal rates of special taxes on the consumption of gasoline and diesel for general use in Spain, which are a fixed amount of euro cents per liter, have been updated from time to time. However, this means tax There is no increase in the rate on these consumptions in real terms, which favors a negative difference In relation to the group of economies of the European Union in these types”, it affects.

use of money

In addition to the aforementioned financial consolidation, the Bank of Spain pointed out that the funds raised could be used twice to “reduce” the “costs that the ecological transition will incur for the Spanish economy in the short term.” “On the one hand, the potential lack of other tax data that induces significant distortions on economic activity as a whole,” says the document, which specifically proposes “reduce labor tax“Since “this can have a fairly wide-ranging effect on activity”.

“On the other hand, additional resources may also work deployment of compensatory policies Which will reduce transition costs in the short term for the most vulnerable companies and households,” he says.

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