World Business News

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Ecofin adds to calls for Spanish VAT hike

Zone(s): Europe, Spain ¦ Sector(s): Taxation
[24 June 2014, Tax-News.com] By Ulrika Lomas, Tax-News.com, Brussels: The European Union’s Economic and Financial Affairs Council has restated the European Commission’s (EC’s) recommendation that Spain should increase its value-added tax (VAT) rate.

Ecofin supported the EC’s view that Spain should pursue measures such as reducing social contributions. It agreed direct tax cuts should be funded by broadening the value-added tax base and other taxes on consumption. The EC’s other recommendations, submitted to Spain on June 2, 2014, included an increase in environmental taxes, as well as reductions in corporate and income taxes.

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