| The government of Mr Zapatero is debating a fiscal U-turn and, doubtless, the politics thereof.
In February 2008, strangely about a month before the 2008 election, Mr Zapatero promised a reduction of €400 on everybody’s income tax bill, including the self-employed and pensioners. The reduction was based on the annual tax invoice and was to be applied as a net deduction to every taxpayer.
This reduction was to be introduced from the tax year commencing 1st January 2008 and would last indefinitely or until further notice.
Interestingly, ‘further notice’ seems to have lasted barely more than 18 months. According to a recent announcement, the government is now discussing the scrapping of this €400 deduction.
We await further developments. |
