The Treasury now tells it will eliminate the pink rate in the budget and the Bank of Spain rejects the measure


The ministry justifies that the measure is thus “previously applicable” and denies any veto enforcement, while the BDE states that the reduced VAT rates should be increased progressively.

Treasury now points to eliminating pink rate in budgetWorld
  • Problem Bank of Spain blasts government complacency: “We are the great euro economy that has done the worst”

Ministry of Finance includes reduction in VAT on products Female cleanliness in next year’s budget, And it will do so after the Equality Minister, Irene Monteiro, refused to include the measure in an abortion law promoted and with the Bank of Spain’s outright disapproval.

The intention to abolish the so-called pink tax, Reducing VAT from 10% to 4%, pointed out this Wednesday by the Minister of Finance, Maria Jess Monteiro, on his departure from Congress, and sources in the ministry have confirmed that this is, in fact, the intention. They state that such exemptions will apply first, because the accounts “apply first“, and they remember that this is a measure included in the agreement of the coalition government of PSOE and United We Can.

They also deny that there is a veto For short, a point that is denoted by the formation that directed oin Belara and, in any case, the Treasury and the Government except on the advice of the Bank of Spain, the European Commission and even the executive himself. Will decide Pointed out on several occasions.

“Movements must be oriented” Reduce types of goods at low rates And bring them back to normalcy”, confirmed yesterday the General Director of Economy and Statistics of the Bank of Spain, NGL Gavillán, in a presentation before the annual report published today by Jiva. , and therefore bringing in these products at the rate of 4%, which is taxed on basic necessities, goes in the opposite direction.

“They are a strain on tax collection and it is An abnormality compared to the rest of European countriesGavilan emphasized, referring to the fact that there are many fewer products in Europe at these lower rates, which the Commission also points out when it recommends increasing the VAT to Spain and the opportunity the government has denied itself. But what is mentioned about some exemption of value added tax.

Criticism of the 20 percent discount

In the same context of the annual report, the Bank of Spain also criticizes the 20 cents per liter fuel reduction implemented by the government to deal with the rise in diesel and gasoline prices. Reason: that Mainly the advantage of high income,

“Preliminary estimates of the effect that a bonus of 20 cents per liter of fuel could suggest could reduce inflation by 0.35 percentage points in low-income households over that period, in which case the reduction would be lower for higher-income households.” faster than experienced by [de 0,61 puntos porcentuales]Indicates the document which is signed by the governor, Pablo Hernández de Cos.

“20 cents off Higher income further reduces inflation compared to the descent. Perhaps the measure was not as focused as it should have been to serve the most vulnerable groups,” Gavilan said.

This criticism was, in fact, already pointed out from some economic sectors, although in no case by a body as relevant as the Bank of Spain. And even those in the government and the finance ministry knew and knew that there was a risk in this measure that, effectively, the higher incomes would benefit the most because they are the ones who use the vehicles the most and Refuel more often. Till the limit. However, in Moncloa and the Treasury they decided to apply this general reduction because it was The fastest way to respond in an emergency,

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