To achieve a more just country, the government should do more to end “fiscal injustice” and pave the way for “economic democracy in terms of public revenue,” says Spain’s labor minister. Yolanda Díaz, head of Smar, a coalition partner in the group, told Euractic partner EFE. Exclusive interview.
As part of the ongoing negotiations between Smar and the PSOE to approve the 2024 budget, Díaz, who is also deputy prime minister and one of the government’s five Smar ministers, will join his Socialist Party colleagues in Prime Minister Pedro Sánchez’s PSOE. urged them to implement several important reforms. To improve tax fairness, EFE reported.
Diaz called for abolishing the VAT exemption for private education, health care and luxury goods, and subjecting them to the same VAT rate as other everyday goods.
Another demand of Diaz’s government partners is that capital income should pay a higher rate of personal income tax (IRPF) than earned income.
“We also want to see key elements of regressive and unfair taxes like the value-added tax changed (…). We want public school attendance to be somehow funded. I’m not talking about “sponsored” schools (public-private mix). Why is private health insurance taxed at 0% in Spain? Is it fair? ” Diaz said.
At the same time, the Smar leader also pointed out that in the current global climate emergency, it makes no sense to exempt international flights from VAT.
According to the minister, all these (negative tax) situations reflect an unequal distribution of wealth in Spain, and Spanish society is highly unequal, with “the median monthly salary totaling 1,545 euros”. He added that it meant that.
Díaz also acknowledged that his party and Sánchez’s PSOE disagree on some tax issues, such as whether the current provisional tax on banks should be made permanent, but the idea is He supported it, but the Socialist Party did not.
(Mathilde Martinez | EFE)
