staple foods, light, gas And public transport After the decree law No. 8/2023, approved by the Council of Ministers in December, was supported by the Congress of Deputies by a single vote this Wednesday, the tax reductions and benefits planned by the Council of Ministers for 2024 will be continued and even expanded. 27 to expand a large portion Fighting inflation and social shield measures Which the administration has embraced since the outbreak of the pandemic and the subsequent Russian invasion of Ukraine.
Congress thus gave its approval. aid package and tax cuts The amount of 5 billion 300 million Euros put together by the manager A 140 page megadecree should happen now It was discussed as a draft law in the Turkish Grand National Assembly. for the inclusion of possible amendments by the opposition.
In order for the decree to be approved in the Congress, it was very important that the 7th Jun deputies abstained after receiving the commitments of the Government. Reduce VAT on oil from 5% to 0% and bearing the full cost of discounts and bonuses on public transport fares. The government has also committed to the immediate publication of b.financial alliances.
Congress also approved omnibus decree No. 6/2023, which includes civil service reforms and tax incentives for patronage, and should now also be processed as a bill.
However, Congress overturned royal decree 7/2023, which included the introduction of new unemployment benefits from June. The reason for this was the negative vote of Podemos MPs.
The consequences of rejecting this decree at this time are:
New unemployment benefit is on the agenda
Congress overturned the decree regulating the reform of unemployment benefits for unemployed people who have exhausted their contributions. In this case, the impact will not be immediately noticeable, as the new subsidy will come into force on June 1. There may be room to negotiate with Podemos in these months. expanding social contribution Number of people over 52 years of age who benefit from this benefit. The negative vote given by Podemos to the decree supported by Vice President Yolanda Díaz was decisive in the Congress’ overturning the decree. We can advocate maintaining the status quo “overquote” Social Security for unemployed people over age 52 who receive subsidies (equivalent to 125% of the inter-occupational minimum wage) (the executive order reduces this rate to 100%).
Subsidy reform proposed by the Labor Party, subsidy amount For most benefits, up to 570 euros in the first six months, 540 euros in the next six months and 480 euros available since then. new groups He thought about the possibility and harmonizing employment and social rights (reduced) for 180 days, plus a one-month period for aid processing will be eliminated.
In any case, as planned unemployment benefit It will remain unchanged until June 1.
However, failure to approve the decree undermines the new breastfeeding leave regulation, which in practice allows workers with newborn children to concentrate on their existing one-hour daily leave and thus obtain breastfeeding leave.take up to 28 consecutive days of paid leave. Or in two fractions of 14 days, or according to “all possibilities of enjoyment”
Food VAT: One more step towards oil
With the approval of the Anti-Inflation Decree, the VAT reduction on basic foods was extended until the end of June. They will continue to pay 0% tax during this period. bread, eggs or milk. Moreover, flours, cheeses, fruits, vegetables, legumes, potatoes and grains. Also the VAT rate at which they are taxed oils, The rate, which was reduced from 21% to 5%, will be further reduced to 0% as a result of the parliamentary agreement with Junts.
Up to 14 percent increase in widows’ pensions
The approval of Royal Decree 8/2023 by the Congress of Deputies leads to a 3.8% increase in all contributory pensions, effective January 1, derived from the automatic revaluation based on the CPI envisaged in the reform of the Social Security Code. Failure to approve the decree in Congress would not put this 3.8 percent increase at risk, but the Government would have to submit a new decree with this measure.
Another issue is the increase in non-contributory pensions because this is not automatically determined by law. The government added a 14 percent increase to the widow’s pension and a 6.9 percent increase to the old-age and disability pension, effective from January 1, 2024.
Energy measures: no changes as planned
The Government’s plans to increase VAT on electricity continue with the approval of decree 8/2023 at the Congress of Deputies From 5% was in effect in 2023 at 10% through 2024 (although it will remain below the 21% that was valid in 2021 before the inflation crisis); HE Special Electricity Tax (IEE) will increase from the current 0.5% to 2.5% in the first quarter of the year and to 3.8% in the second quarter; and tax Value of Electrical Energy Production (IVPEE) rate will be 3.5% until March and 5.25% until June.
In case of supply natural gas, VAT will increase from 5% to 10% from the first three months of 2024, when it “returns to normal levels (21%)”.
Additionally, protection is maintained the most vulnerable consumers, Through the ban on supply disruptions created by the pandemic, limiting increases in butane cylinder prices, extending electricity and thermal social bonus discounts and maintaining buyers in the three categories available so far.
The decree, approved by the government on December 27 and approved by the Congress of Deputies this Wednesday, also expands the limit of growth. regulated gas rate Special TOUR as well as discounts for (TUR) and neighboring communities 80% of the tolls of electricity-intensive companies, or 55% of the charges on domestic consumers’ bills.
Evictions and mortgages
The approval of the anti-crisis decree by Congress also allows the crisis to be suspended. evacuations and evacuations for vulnerable households There is no housing alternative.
In addition, it follows the Government’s decision to abolish cash withdrawal commissions at tellers for the elderly and disabled people, as well as bank commissions or variable-rate compensation for early repayment of loans.