IVA increase

[oliveview01]

Not sure what date, I think it might be Jan (but don´t quote me) IVA is going up to 21% the 8% rate is going up to 10% the lower rate is staying the same.
Public workers will not be happy, their double pay packet ( December) has been suspended. Both our neighbours (husband and wife) work in the public sector, they are not happy, I think they expected it to happen though. I think the government has cut benefits for the disabled too. I wonder how long the pensioners will get a double month (July and December) for?
If every old girl was to give the government half her gold jewellery the country's deficit would be wiped out overnight

According to the BBC the new reforms are to be put through asap, OH thinks it might be increased this coming Friday.

EDIT: Spanish teletext says IVA up this weekend

[annfoto]

IVA goes up on 1st August according to Reuters.
Unemployment benefit cut to 50% after 6 months
Purchase tax on new housing to be reinstated
Tobacco tax up

[oliveview01]

IVA goes up on 1st August according to Reuters.
Unemployment benefit cut to 50% after 6 months
Purchase tax on new housing to be reinstated
Tobacco tax up

How the hell are the unemployed supposed to manage when there is no jobs to go to? I guess, like the UK, there are folk here who have no wish to work, but the ones I feel sorry for are the folk who want to work. I realise the governments have to do something, but as usual, it will affect the poorest as normal.

[katy]

Having the lowest taxes on ciggies and booze in Europe has to be clawed back from somewhere.

[oliveview01]

Having the lowest taxes on ciggies and booze in Europe has to be clawed back from somewhere.

The end of the 1€ glass of beer?

[El Cid]

Unemployment benefit cut to 50% after 6 months

Not quite as bad as it sounds. It's been cut from 60% (of some figure) to 50%

Not good though. At least the civil servants have lost a months wages and they are cutting the number of councillors by 30%.

Sid

[annfoto]

The end of the 1€ glass of beer?

I shouldn't think so when the Prime Minister himself said that con IVA o sin IVA was a national sport
El Mundo say the increase starts this Monday.

Not quite as bad as it sounds. It's been cut from 60% (of some figure) to 50%

From El Pais:
"The Government will lower to 50% replacement rate for unemployment benefit from the sixth month in unemployment. Now, when someone loses his job and asked to collect unemployment insurance, the amount is calculated on the base salary of the last 180 contributions. The standing charge for the first half year 70% of that amount and so far, 60% from that time. The measure that has produced today means a reduction to 50% this last stretch."

Unsurprisingly I read that the police have been firing rubber bullets at demonstrators in Madrid today

[El Cid]

"The Government will lower to 50% replacement rate for unemployment benefit from the sixth month in unemployment. Now, when someone loses his job and asked to collect unemployment insurance, the amount is calculated on the base salary of the last 180 contributions. The standing charge for the first half year 70% of that amount and so far, 60% from that time. The measure that has produced today means a reduction to 50% this last stretch."

I bet a lot of unemployed people in the UK would be happy with 50% of what they had been earning!

And as for redundancy pay in Spain - it is astronomical compared to the UK.

Sid

[crazyred]

Unlike the UK, Spanish unemployment benefit and the equivalent to income support do not run indefinitely. You get it for an amount of time corresponding to how long you worked and paid into the system and when that time is up, your benefits are cut off . So, you have to get a job not only to feed yourself and your family but to start paying back into the system and to be entitled to any benefits again you have to work for at least 6 months.

The rise in IVA is going to cause more struggle and the situation isn´t helped by supermarkets hiking their prices for the summer season. As a lone parent made redundant 2 years ago, the Spanish income support doesn´t even cover my bills and now that it´s summer, even if there was a job available I wouldn´t be able to afford child care until school starts again in Sept. There is nobody and nothing for me to go back to in the UK so that isn´t an option. I´m actually quite fearful of what the future now holds as there does not seem to be any sign of improvement in the near future. I just hope that there will be some jobs available in Sept, although I´ve been looking for 2 years so it´s not looking too hopeful

[katy]

Well if we are back to UK comparisons unemployed with families get much more than 50% of their earnings and it's indefinite, not for one or two years as in Spain and then it's queue up at the church charity. As for redundancy...most workers never get it because the sum of paying off the staff causes the company to go bankrupt.

A lot of things that you praise Spain for is why it is in a mess.

[Technobear]

date of introduction:
el pais says 1st aug.
el mondo is saying this friday it goes to the council of ministers, so would be entered (coming into affect) by next monday, but then says it will processed by congress on 25th.
(id guess this is where the confusion about next monday is from, but assume it will be 'future dated' to first august, and has to be processed by congress to come into affect - though dont know political system too well here )

not too happy, about to start building work, so that will be at 10% rather than 8%, not a great incentive to invest is it, perhaps i will put work off or find other ways to reduce tax bill (pay less?!)

others will be thinking the same, which is why increasing VAT/IVA is rather dumb in recession as it tends to reduce consumption/investment, which will put a hold on growth. it also (as a regressive tax) tends to hit the poorer more.

i dont doubt they need to increase tax revenues, but im surprised they dont hit income tax which can be targetted abit more carefully.

also as others stated, reduce spending first especially reduce bureaucracy (e.g. simplified/more efficient tax system) ... this will also benefit for the long term, which iva increases wont.


oh well, will just go drink some beer in the sun... im sure i'll feel better then

[El Cid]

A lot of things that you praise Spain for is why it is in a mess.

I am not praising it - I agree with you - some of the benefits they give are part of the reason for the mess.

Take redundancy pay - it's so big that it deters employers offering full time contracts.

The labour market in Spain needs a very big shake out in many areas.

It's going to take a very long time!

Sid

[fincalospinos]

Having the lowest taxes on ciggies and booze in Europe has to be clawed back from somewhere.

Here we go again, usual sweeping, incorrect misinformation.

Total tax on cigarettes in Spain, as a percentage of average retail price,including IVA / VAT, is higher than in Belgium, Germany, Denmark, Luxembourg, Italy and Netherlands, and is only 2% lower than the UK

http://ec.europa.eu/taxation_customs/re ... cco_en.pdf

[katy]

Yes, I think a lot of those employment rights came out of Brussels and Spain adopted them. It's the same in the netherlands too, one of my Daughter's staff had about 6 months sick for a bunion removal.

A friend in Spain bought the rights to a restaurant in a hotel on marbella paseo. He was fairly experienced as he had worked auditing and stocktaking major hotels and restaurants on the coast. Within a short time half of the staff were off sick. He lost a lot of money.

[katy]

Having the lowest taxes on ciggies and booze in Europe has to be clawed back from somewhere.

Here we go again, usual sweeping, incorrect misinformation.

Total tax on cigarettes in Spain, as a percentage of average retail price,including IVA / VAT, is higher than in Belgium, Germany, Denmark, Luxembourg, Italy and Netherlands, and is only 2% lower than the UK

http://ec.europa.eu/taxation_customs/re ... cco_en.pdf

Here we go again...shouldn't I be saying that Can you explain then why cigarettes cost so much less in Spain and so high in the Netherlands where they are almost the same price as the UK

[Mowser]

This non-payment of the "extra" December salary is of course a real cut. It isn't in fact an extra payment. Workers in the public sector have their annual salary paid in 14 instalments. They will now receive 13 payments.

[katy]

So a pack of Malboro are around £7.40 in the UK, around 4.50€ (?) in Spain. The extra cost goes into the UK coffers in tax. Why doesn't Spain do similar when they are bankrupt

[crazyred]

So a pack of Malboro are around £7.40 in the UK, around 4.50€ (?) in Spain. The extra cost goes into the UK coffers in tax. Why doesn't Spain do similar when they are bankrupt

Because that ends up taxing the poor again!! I think there´s more than enough tax on cigarettes. Why not start taxing fast food and high end items like smoked salmon and caviar? Or start making banks and financial institutions pay for their own **** ups??? Too much has been ploughed into banks to bail them out but they show bugga all leniency for those struggling to pay for their homes... no bail out for them!!

[oliveview01]

Why not start taxing fast food and high end items like smoked salmon

Leave my smoked salmon alone!!!

[frank]

So a pack of Malboro are around £7.40 in the UK, around 4.50€ (?) in Spain. The extra cost goes into the UK coffers in tax. Why doesn't Spain do similar when they are bankrupt

Because that ends up taxing the poor again!! I think there´s more than enough tax on cigarettes.

Anyone that is "poor" and insists on smoking have their priorities horribly wrong.