The decision of the Ministry of Finance not to raise the exempt limit, and that the minimum interprofessional salary tribute in the Income Tax of natural persons (IRPF) has raised the controversy. Before the approval of the new SMI, some rifirrafes were already seen within the government, defending the Ministry of Labor that would have to be exempt. And now, Three different political groups have presented their own proposition of law to achieve this exemption: Add, the Popular Party and Podemos.
The first to take the step was Canthat crossed out of “absolute scandal” that hacienda decides, for the first time, not to raise this exempt limit. “It seems an absolute scandal that this government is forgiving taxes on energy companies while, for the first time in our history, people who charge the minimum interprofessional salary will begin paying taxes. It is a democratic scandal, ”said his general secretary, Ione Belarra, in the halls of Congress.
Consequently, on Tuesday afternoon they submitted the first proposal to reform the Law on IRPF, to Include a provision that brings that, in no case, withholdings for work returns are practiced in those workers who receive, in annual computation, the minimum wage. And, about this, he warned that they would have a parliamentary majority.
PP law proposition
After pruning, it was the Popular Party who registered a second proposition of law in the Congress of Deputies and in the Senate to Adjust the exempt limit of the Income Tax of natural persons to the minimum interprofessional salary of 2025set at 16,576 euros gross per year.
The leader of the ‘popular’, Alberto Núñez Feijóo, already criticized the decision of the Treasury before the approval of the new SMI in the Council of Ministers. And, with the movement of two propositions, they try to avoid “that the government makes box at the expense of the workers”, since they ensure that, if not exempt, the government would be “practically” with 50% of the increase.
Third proposition of law, by adding
At the last minute, it was Add who registered the third proposition of law of the day, complying with the notice that they launched days ago. According to sources consulted by Europa Pressthey insisted that the minimum wage should not be taxed in the IRPF to “not generate more pressure on those who enter” and go to a “progressive character” system.
This political group, a Government Partner, acknowledges that they are facing an “unpublished situation” with serious consequences: “This implies that hundreds of thousands of workers with minimal income will see their available income reduced due to tax withholdings, this fact partly neutralizes the benefits of the SMI ascent and introduces an element of inequality within the fiscal system, since it affects those who have less economic capacity, ”they defend in the registered text.
In the proposal, they include two regulatory modifications. The first consists of reform the IRPF lawestablishing one Reduction in net work performance for taxpayers whose income is equal to or lower than the SMI or who do not exceed more than 5,000 euros said threshold. The second, tries to modify the IRPF regulations adapting the withholdings applied by the payers to the new fiscal reduction, guaranteeing that the application of the benefit is directly reflected in the payrolls of the affected workers.