Junts relies on the PP and Vox to call for a general tax cut

Yesterday, the Congress of Deputies approved an initiative promoted by Junts per Catalunya (Together for Catalonia) calling on the government to cut taxes across the board with the aim of "alleviating the financial burden on families, workers, businesses, and the self-employed."

The text proposes, among other measures, reducing VAT on certain essential services, deflating the lowest income tax brackets, almost completely subsidizing inheritance tax, and introducing a series of incentives and tax protections for the self-employed.

The post-convergence motion was supported by the PP, Vox, and UPN, allowing the four right-wing parties to achieve an absolute majority of 176 votes, surpassing the 163 votes against them by the PSOE, Sumar, BNG, Podemos, Bildu, and Esquerra Republicana. The PNV and Coalición Canaria decided to abstain.

Junts thus obtained the approval of the Lower House to propose a reduction in VAT from 21% to 10% on funeral services, and from 10% to 4% on telecare, home help, and residential care. The party, highly critical of the fiscal policy of the Ministry of Finance headed by María Jesús Montero, also proposes deflating the first three brackets of personal income tax and raising the minimum tax-exempt amount as a measure to offset inflation.

In terms of property, the initiative includes a 99% discount on inheritance tax among immediate family members and its elimination in cases of generational succession in family businesses. According to Carles Puigdemont's supporters, the aim is to "guarantee the continuity of the business fabric."

Regarding the self-employed, the text proposes expanding deductions to 100% of net income, allowing a 50% deduction for certain shared expenses, and declaring the primary residence non-attachable for debts arising from professional activity. Furthermore, it calls for the abolition of the tax on electricity production when there is no tariff deficit.

Junts spokesperson Josep Maria Cruset was highly critical of the government's tax policy, accusing it of increasing tax revenue at a time of declining purchasing power among citizens.

Although the motion is not binding, it does serve as a wake-up call to the executive branch and demonstrates Junts' ability to set the agenda in a fragmented Congress.