Spanish authorities plan to reduce personal income and corporate taxes in 2015-2016 with a view to spur consumer spending and investment in the economy.
Income tax will fall by an average of 13%, while the tax payments of the Spaniards, whose income is less than 24 thousand euros per year, will be reduced in 2016 by 23%, said Deputy Prime Minister Soraya Saenz de Spain Santamaria.
Under the plan approved by the Spanish government the highest income tax rate for 2016 will be reduced to 47% from 52%, the lowest – to 19% from 24%. The government will increase the tax benefits for certain categories of citizens.
Corporate tax in 2015 will rise to 28% from 30%, and in 2016 will drop to 25%.
According to the minister in charge of the country’s budget Cristobal Montoro, tax cuts will add 0.5 percentage points to the annual rate of growth of the Spanish economy.
“Tax reform will increase the scale of business and competitiveness”, – he said.