Jul 01, 2020
Raise taxes and adjust expenses, asks the Bank of Spain before the serious situation
This news has been received from: cvbj.biz
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The National Statistics Institute (INE) confirmed yesterday that the Spanish economy plummeted 5.2% in the first quarter of the year compared to the previous quarter as a result of the first effects of the covid-19, thus marking an unprecedented decline since it began the statistical series half a century ago.In this context, the Bank of Spain yesterday called on the Government “an ambitious response” and with consensus before the “seriousness of the situation”. In his cookbook he proposes medium-term measures such as tax increases and spending adjustments to contain the increase in debt.
In the short term, the Banco de España considers it “absolutely essential” to maintain support for the most vulnerable incomes, companies and households. He points out that the health crisis is having a greater impact on the most vulnerable groups, which, he warns, will foreseeably suppose “a further deterioration” in inequality levels. In order to give liquidity to companies, it is committed to prolonging public and labor guarantee programs to continue with the ERTE. However, it points out that the training of workers affected by ERTE should be favored and, in some cases and under certain conditions, this situation can be combined with work in other sectors or companies less affected by the crisis.
Once the recovery is “well established,” the body governed by Pablo Hernández de Cos advises the Government to prepare a medium-term fiscal plan with adjustment measures to channel the debt that the coronavirus health crisis will leave, “the largest in many decades. ” The goal would be to reduce the debt ratio to below 100% of GDP in ten years and send a reassuring message to the markets.
In his annual report, the financial supervisor indicates that tax collection in Spain, including income from social contributions, is less than the average for the euro area by about two percentage points of GDP, which implies that it could collect more than 20,000 additional million euros.
The Bank of Spain proposes to raise the reduced rates of VAT and excise duties, with the focus on environmental taxes, where it considers that there is still much room for action. In addition, the body also points out in its report that a “distinctive element” of Spanish taxation “subject to reconsideration” is the “high level” of tax benefits, derived from the presence of “numerous” exemptions, deductions and reduced special rates, which they frequently generate “significant losses” in collection and “distort” the efficiency and equity of the tax system.
In addition, the supervisor recommends adopting the public spending review proposals prepared by the Fiscal Authority (AIReF) and reforming Social Security to guarantee the sustainability of the public pension system.
News Source: cvbj.biz
COVID-19 : Coronavirus | Detected an outbreak in a building in Albacete that forces its neighbors to be confined
The General Directorate of Public Health of Castilla la Mancha has communicated the appearance of a coronavirus outbreak in a building in Albacete. As a precautionary measure to prevent further spread of the disease, their neighbors will be confined after contagions have been confirmed in two plants.
The first focus was classified as family and affected five people. they were going through the relevant home isolation but two more cases of contagion were confirmed on Friday, that in addition required hospital admission.
This situation has led to the quarantine of the property, proceeding to take the measures of study, surveillance and control thereof. All residents comply with the definition of contact according to the protocol of action against infection cases approved by the Ministry of Health.