Against the crisis, the PP demands fewer taxes: 10% VAT on energy and a generalized reduction in IRPF, doubling the minimum exempt per child

The PP wants to cushion the impact of the crisis that is coming due to the war in Iran with a known recipe, the tax cut.

The 'popular ones' have announced this Monday a first shock plan with generalized tax cuts in the Personal Income Tax and in energy bills.

Among the central measures are doubling the tax-exempt minimum per child in the IRPF, reducing VAT to 10 percent on all energy purchases and eliminating the tax on electricity generation.

What tax cuts does the PP propose?

Generalized reduction in Personal Income Tax

1. Reduction of all its brackets between 3% for the highest incomes and 10% for the lowest incomes
2. Raise the living minimum by 10% for all taxpayers
3. Double the living minimum per child
4. Deflate all IRPF parameters with respect to 2025 inflation

Act on energy bills

1. Reduction of VAT applied to electricity and gas bills from 21% to 10%
2. Reduction to 10% of VAT on petroleum derivatives or extraordinary bonus in the equivalent public sale price if there is no authorization from the European Union

Impact on the IRPF and reduction in the energy bill

With this package, the PP intends to “revalue” the disposable income of Spaniards, especially for households with children, using the IRPF as a relief measure. To do this, it proposes a reform that doubles the vital minimums for dependent descendants and updates the tax brackets. They calculate that this modification would entail an average benefit close to 200 euros per taxpayer.

Along with this, they propose reducing the energy VAT to 10 percent for all consumers in a context of rising gas and oil prices, as well as abolishing the electricity generation tax.

According to these same sources from the PP, “all measures together represent for an average household (2 adults and two children) a saving of about 75 euros per month, almost 900 euros per year”.

They will take the proposal to Congress and pressure the Government

Feijóo's party intends to submit these initiatives to parliamentary debate and check the support of the other groups. At the same time, it throws a challenge to the Executive to get ahead and approve them tomorrow itself in the Council of Ministers, understanding that they are of "urgent application" because the middle classes are, they recall, those who end up "paying the bill for all national and international crises".

In this context, and taking into account that Pedro Sánchez's motto regarding the attacks by the US and Israel against Iran is "No to war," the PP contrasts its own political message: "Yes to Spaniards."