The tax cuts contained in the latest anti-crisis decree approved by the government will result in a reduction in the total collection to the public coffers. 10,909 million euros, As calculated by the Executive in the economic impact report available to Europa Press.
In the face of the crisis, the government’s economic support measures, for example free Renfe passes or 200 euro check For households with an income of less than 27,000 euros, it will cost more than 10,000 million euros.
However, this decree law, which was approved last December and pending approval, Confirmation in congress it also enlarges or introduces new tax exemptions, mostly in energy matters, which cause a reduction in the State’s revenue.
Although there is a loss of collection in the document calculated every six monthsMost approved measures are annual.
1.500 million for VAT on electricity
In this way, the memory of the Decree, Extension of VAT by 5% for certain electrical energy supplies, it will have a six-month cost of 1,445 million Euros on an accrual basis, 2,890 million during the full year of validity.
Something similar happens with the extension of the 0.5% rate. Special Electricity Taxindirectly taxing electricity consumption. This measure will result in a revenue loss of 2,298 million Euros per year.
On the other hand, applying the 5% discounted rate to the natural gas supply in the energy branch will create a revenue loss of 433 million euros (866 million per year) in the first half. a reduced rate of 5% to biomass and wood-derived briquettes and ‘pellets’ for firewood would mean a loss of 41 million euros in revenue in the first half, 82 million in annual calculation.
The manager is aware of both previous collection effects and General State Administration aspect Regional Authoritiesbecause the measures have an impact on VAT and Electricity Special Tax collections, the proceeds of which are partly or wholly transferred to the autonomous communities.
Ultimately, the extension of the suspension of the Electricity Production Value Tax, 4.112 million euros in the whole year.
661 million for VAT on food
The decree, which leaves the energy field, includes other measures. relieve household bills with huge revenue implications.
One of them is the abolition of VAT on basic foods. bread, flour, milk, eggs or fruits and vegetablesThis would mean a reduction in revenue of 604 million euros for the State. Reducing the tax rate on edible oils and pasta from 10% to 5% could result in a revenue loss of 57 million euros in the first half.
Contrary to detailed tax measures in the energy field, references to food in the decree are not designed annually. In fact, their temporal extension will be determined by evolution. Core inflationIt includes price increase excluding energy products and unprocessed food.
Thus, if the interannual rate of core inflation falls below 5.5% in March (data available as of April), tax rates will be restored. The underlying ratio ended 2022 at the highest level in 30 years, After recording an annual rate of 7% in December and surpassing the overall CPI data by 1.3 percentage points (5.7%) in the same month of 2022.