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Government vetoed two amendments to PP to make tax reduction permanent

The government has vetoed in Congress the processing of two amendments to the PP, aimed at making permanent the suspension…

By admin , in news , at May 26, 2022

The government has vetoed in Congress the processing of two amendments to the PP, aimed at making permanent the suspension of tax on the value of production of electrical energy (IVPE). Pay for electricity and get 10% VAT reduction Apply for electricity bill.

Thus, the executive in its article 134.6 claims to be able to take the power conferred by the Constitution out of parliamentary procedure, which can lead to an increase in expenditure or a decrease in budgetary income.

Sent to Congress with this document to which they had access Europa PressThe government does not include in the bill these two amendments registered by the PP for the creation of the National Fund for Stability of the Electricity System.

temporary suspension of taxes

First, the government vetos the amendment proposed by PP. Set IVPEE tax rate to 0%, considering that “the proposal presupposes a practical repeal of the tax and does not respond to the expected nature of the measure to suspend the tax”. This suspension, affects the executive, is “temporarily configured to reduce the increase in the price of electricity and its impact on the bill.”

Despite the fact that the tax is actually suspended, the government estimates a collection loss of 1,400 million euros with the measure, and defends that the effect of the measure is “in the general framework of economic and fiscal policy”. should be evaluated”. The definitive suspension of this tax is one of the recommendations of the Committee of Experts convened by the Finance Ministry for tax reforms.

to veto Permanent reduction of 10% VAT As applicable to electricity supply, the government justifies that a measure of these characteristics “requires a sober analysis given its significant impact on public revenue and its generalization to all recipients”.

Thus, it calls to take into account that “factors other than the tax burden” are those that explain the present value addition, for which it argues that “other non-tax measures may help reduce the final value”. may be more effective. Electricity”. The impact of this reduction, which is currently being implemented, tentatively, has been estimated by the government to be 1,800 million.

Funds for deducting fixed costs from invoices

The fund is one of the electricity market reforms promoted by the government, and with it aims to remove part of the fixed cost from the electricity bill, previously known as Remuneration, Co-generation and Waste of Renewable Installations (RICOR), Renewable Premium.

The government’s view is that this fund, which should be financed by all energy operators based on their business volume and their role in the energy transition, gradually supersedes these fixed charges for the power system which are currently five. years are included. Access toll of electricity bill.

The bill passed its first vote in September 2021 and has remained ‘frozen’ since the month the Congress Bureau passed the deadline for groups to submit amendments.

Government vetoed two amendments to PP to make tax reduction permanent

2022-05-26 16:00:17