The Popular Party (PP) will bring to the Congress of Deputies a package of fiscal measures with the aim of alleviating the impact of rising energy prices on homes. Among its proposals are doubling the deductions per child in personal income tax, lowering the VAT on energy to 10% and eliminating the tax on electricity generation.
The party led by Alberto Núñez Feijóo intends to seek the support of the rest of the parliamentary groups in Congress and challenges the Government of Pedro Sánchez to approve them immediately in the Council of Ministers tomorrow, considering that they are measures of “urgent application” in the face of the rise in energy prices, according to Europa Press.
The initiative comes at a time of economic tension due to the recent rise in the price of gas and oilwhich is making energy more expensive and directly affecting household budgets. According to PP sources mentioned by Europa Press, this situation aggravates the loss of purchasing power that, in their opinion, families have been suffering for a long time. “Real salaries do not rise while taxes do,” they maintain from the party leadership.
Personal income tax reform for families with children
One of the main measures of the package focuses on the Personal Income Tax (IRPF). The PP proposes doubling the deductions per dependent child and updating the tax brackets to reduce the tax burden on families.
According to the party’s calculations, this reform would mean an average saving of about 200 euros per taxpayer. The training maintains that the measure would help “revalue the salary of Spaniards”, especially in the case of households with children.
Tax reduction on the energy bill
Two measures aimed at reducing the energy bill are added to the personal income tax reform. On the one hand, the PP proposes reducing VAT on energy to 10% for all consumers. On the other hand, it proposes eliminating the tax on electricity generation.
According to the party’s estimates, these measures together would mean a saving of about 78 euros per month in energy for an average home, which the PP defines as a family made up of two adults and two children.
Initiative in Congress in the middle of the political climate
Faced with the Executive’s motto on the international situation “No to war”, the popular ones assure that their priority is “yes to the Spanish.” With this message, the party maintains that the middle class usually ends up paying the consequences of national and international crises.
It remains to be seen, however, what parliamentary support the proposal will have in Congress and whether the Government is willing to apply any of these measures in the short term. It must be taken into account that in recent years, fiscal policy on energy and aid to families has been one of the main points of economic confrontation between the Executive and the opposition.