The message isn’t just about paying more for a beer or a night in a hotel, it’s about rebalancing the tax system: Imposing more taxes on unnecessary consumption Reduced work pressure and more modest salaries.
The starting point is the well-known diagnosis in the Treasury offices: that Spanish VAT remains highly fragmented, with multiple reduced rates and exemptions that reduce revenues and complicate tax neutrality.
In theory, VAT should treat all activities equally, except… Basic necessities.
In practical terms, services such as restaurants or tourist accommodation Enjoy a discounted rate of 10%, Away from the year 21% And also less than what other European partners offer for similar consumption.
This difference is what the foundation run by Matthias Kormann invites us to review.
The technical argument is simple, but politically sensitive. On the income side, gradually equalize the VAT on bars, restaurants and hotels with the general rate It would increase revenue It would bring Spain closer to the OECD average.
In terms of spending, the solution lies in recycling part of those resources Protecting the most vulnerable groups during Direct transfers or specific reductions in other taxes.
This means that a tourist or consumer with more spending power will bear most of the cost, while a family with limited income can Recover in another way what you lose on the final ticket.
The indicated sector is not small. Hospitality and accommodation They are an essential part of the Spanish economy, Both in terms of labor turnover and employment, it was one of the drivers of post-pandemic recovery.
Specifically, the turnover of the hospitality sector in our country is 157,000 million euros – with a growth rate of 6.6% – and hotels 22,000 million euros. Therefore, an increase in VAT may mean Between 18,000 and 20,000 million euros additional in collections.
Tax wedge
The OECD also warns that “the Spanish tax system faces various shortcomings It hampers productivity and revenue“.
According to his calculations, Spain: Tax to GDP ratioby 37.3% in 2023, which is higher than the OECD average (33.9%) and lower than the EU average (39%).
The OECD also warns of another problem: The so-called tax wedge. Spain represents a relatively large difference between what a worker costs the company and what they ultimately receive in their net paycheck.
This difference is fed, above all, by Social contributions and other taxes on employment Which, according to the agency, hampers productivity, discourages formal job creation and particularly penalizes low salaries.
It is then proposed to use part of the additional income from VAT and other taxes To reduce the burden on more modest salaries.
The proposal can be summed up as a trade-off: increase taxes where less economic distortion is generated, and reduce them where their impact on employment and growth is more pronounced. In practical terms, this means less pressure on paid work and more Certain consumption patterns.
Green taxes and health
The OECD completes its package of recommendations with an agenda “Green taxes” and public health.
In this sense Think tank He warns that Spain continues to apply Relatively low rates To products such as diesel, some energy sources and alcoholic beverages compared to other neighboring countries.
The OECD seizes the opportunity to insist on comfort Equating the tax on diesel with gasolineStrengthening taxes on the most polluting vehicles and fuels, and reviewing progressive taxes on alcohol and spirits.
The goal is not only to balance accounts, but to direct behavior: Make the use of more harmful technologies and products less attractive Accelerating climate change.
Club of developed countries It explains that these measures must be accompanied by well-targeted compensation for vulnerable families, which prevents… The cost of green transition It falls disproportionately on those who have fewer options for change.
In parallel, he asserts that boosting these taxes could finance investments in public transportation, energy efficiency and social services.
The common denominator between all these proposals is to rebalance the tax system towards numbers that are considered less distorting to growth.
Lower relative weight Social contributions and other taxes on employment More taxes on the consumption of non-essential goods, luxury activities, polluting energy and products harmful to health.
The intent is twofold: to ensure sufficient revenues to maintain the country’s welfare state Old age country At the same time, reducing negative impacts on job creation, investment and competitiveness.