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Spain's Rajoy confirms income tax cuts in 2015

22 January 2014   (0 Comments)
Posted by: Author: Ulrika Lomas
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Author:  Ulrika Lomas (Tax-news.com)

Spanish Prime Minister Mariano Rajoy has announced tax cuts for 2015. These should be voted by Parliament later in 2014. 

In an interview held last Monday, Rajoy promised tax cuts in 2015. This confirms previous suggestions from within the Government that taxes would decrease in future years. Tax cuts are therefore officially on the agenda now. 

The focus would likely be on the personal income tax (IRPF), as the Government is trying to ease the burden of austerity on household budgets.

"2012 was a year to fix chaos and Spain's bankruptcy situation. 2013 has been about establishing a solid basis (for recovery). 2014 is a year for employment, and 2015 is that of employment consolidation and tax cuts", said Mr Rajoy.

IRPF cuts seem to be a purely political move, especially in a country with a jobless rate nearing 26 percent and a ballooning budget deficit. The cuts may nonetheless be justified to make up for Spain's previous austerity measures, which have been particularly harsh.

Mr Rajoy has not indicated how generous the tax cuts will be. This all remains to be seen when the actual reform is presented to Parliament; that is, not before spring 2014. 

This article first appeared on tax-news.com.





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