Measures for self-employed due to the war in Iran: what the Government proposes and what the associations ask for

The proposals on the table: what is being discussed at the meeting of Yolanda Díaz with ATA, UPTA and Uatae to protect the self-employed

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The second vice president and minister of Labor, Yolanda Díaz, will hold this Wednesday a meeting with the main organizations of self-employed workers —ATA, UPTA and Uatae— to analyze the urgent measures plan that the Council of Ministers plans to approve next Friday, with the aim of facing the war in Iran.

The meeting, which will take place at the headquarters of the Ministry of Labor after the government control session in Congress, occurs in a context marked by the rising cost of oil and gas since the attacks by the United States and Israel on Iran, with a direct impact on energy costs.

The Executive proposes an “integral” response in this first phase, focused on mitigating the economic and social effects of the crisis. In parallel, the associations of self-employed workers have conveyed their own proposals to protect the group in the face of the increase in costs.

The Minister of Labor has indicated in recent days that the Government's objective is to veto dismissals for energy reasons, in line with the measures adopted during the war in Ukraine, although the current package will be, for the moment, less forceful.

“I want to convey a message of calm to the Spanish citizenry. The Government of Spain works to protect its productive sectors and working people,” Yolanda Díaz recently declared.

What the Government Offers

The plan that the Executive is preparing is oriented, in this first phase, to face the impact of the increase in energy prices, especially in fuels and natural gas. The proposal is part of an “integral” response to the economic consequences of the conflict in Middle East, with special attention to the effect on production costs.

Among the advanced measures, the intention to veto dismissals for energy-related reasons stands out, following the precedent of the regulations approved during the war in Ukraine.

However, the scope of the package will be more limited compared to the previous one, given that, for now, the main economic impact is concentrated on the increase in the price of fuels.

ATA: tax cut on energy

From the National Federation of Associations of Self-Employed Workers (ATA), its president Lorenzo Amor defends that the Government act on the taxation of energy.

Specifically, it proposes a reduction of special taxes and a reduction of VAT applied to electricity and gas, with the aim of alleviating the impact of rising energy costs on the self-employed.

UPTA: bonuses, tax relief and liquidity

UPTA has transferred to the Executive a set of measures under the denomination of ‘Autonomous Shield’, focused on protecting the collective given the increase in energy costs and raw materials.

Among its proposals, the direct bonus on fuels for professional uses stands out, with aid of between 0.20 and 0.30 euros per liter. Likewise, it proposes the reduction of VAT to 5% on energy supplies and the implementation of compensation mechanisms when the electricity market exceeds certain thresholds.

The organization also includes compensation against inflation, such as quarterly checks for self-employed individuals with lower incomes and extraordinary deductions for expenses affected by the price increase.

In the tax sphere, it proposes automatic deferrals of VAT and personal income tax without interest, reductions in fractional payments, and adjustments to the module system. In addition, it proposes enabling liquidity lines through the ICO, activating an extraordinary cessation of activity, and ERTE formulas for self-employed individuals with employees.

Uatae: vulnerable self-employed and energy protection

Uatae proposes exceptional tax measures aimed at self-employed workers with lower incomes, including temporary VAT reductions on essential supplies such as electricity, gas or professional fuels, linked to income criteria.

The organization proposes the creation of the figure of the vulnerable self-employed person, with three categories —vulnerable, severely vulnerable, and at risk of social exclusion— depending on the economic and family situation.

Based on this classification, it proposes extending the social electricity bonus to commercial premises, with discounts of between 65% and 100% of the bill, as well as the creation of a social thermal bonus to cover climatization costs.

The package also includes measures to ease mortgage payments linked to economic activity, through the freezing of installments or the extension of terms, and actions to limit rent increases for commercial premises, especially when the owners are large holders.

Uatae proposes that these measures for the self-employed to face the effects of the war in Iran be maintained at least during this year, with the possibility of extension if the current economic conditions persist, and suggests that some could be consolidated structurally.