The PP will abstain on the decree with tax cuts due to the Iran war

MadridIt was no longer decisive, but its vote was one of the last unknowns in the vote on the decree with tax cuts due to the Iran war that Congress will approve this Thursday. The PP plans to abstain, according to popular sources. However, Alberto Núñez Feijóo's party still leaves the door open to a vote in favor if there is a last-minute change of direction by the Spanish government. What would have to happen? That Pedro Sánchez's executive commits during the debate, which will take place shortly, to deflating personal income tax (IRPF). For the PP, the package of measures approved last Friday by the Council of Ministers is still "insufficient." However, they will not vote against it because "it includes part of its proposal for tax cuts." Nor will they vote in favor because they want even more.

In fact, the PP already sent a letter to the Spanish government this Monday demanding that "the IRPF rate be adjusted" to offset the effect of inflation. In a response sent the following day, also by letter, Sánchez's executive did not take up the challenge and reaffirmed its approach, which amounts to approximately 5 billion euros in aid and tax incentives. Among the measures, the tax cut on VAT (from 21% to 10%) and the special tax (IEH) applied to gasoline and diesel stands out.

During the three months the measure is in effect (until June 2026), Funcas has calculated that it will have a collection cost of 1,055.6 million euros, according to an analysis published this Thursday by the study center. The bulk of this money is due to the VAT reduction. The average household savings will be 90 euros during the three months the tax cut is in operation, according to Funcas's calculations. In any case, it will not affect everyone equally. The organization once again warns that these types of measures are "regressive." "The higher the income level, the greater the tax savings," it highlights, and acknowledges that the measure may be "effective" in rural areas with little public transport, reports Núria Rius Montaner.

The Spanish government has had the reassurance for a couple of days that this plan would pass the lower house's filter, necessary for these measures to remain in force, because Junts announced that it would vote in favor.