In Spain, the rise of this tribute was materialized in July, causing that is, once again, the weakest groups, those than the 88.76 percent of the Spanish citizens gains 30,000 annual Euros less than -, those that pay a good part of this increase.

The ascent of the IVA supposes a clearly regressive measurement, since the mileuristas - the 63 percent of the Spanish employees and the pensioners will be, once again, the great ones harmed of an initiative that not only will dissuade the consumption - to less rent, less demand, but it will cause an increase of the submerged economy.

By all well it is known that the fiscal evasion is a phenomenon that is accentuated at times of crisis, as it demonstrates the fact to it of the acceleration of the fraud as of 2008, agreeing with the beginning of the crisis of the Spanish economy.

The technicians of Property we observed with disagreement that the Government tries to collect 5,150 million Euros by the increase of the IVA - this number will be something smaller if the effects of the adjustment plan are entered, instead of to act on the highest income or to stop the fraud in the IVA, that takes place through as common formulas as to hide part of the sales, to notarize a building to price inferior to really paid, the emission of false or falsified invoices, or the use of particular expenses to deduce a IVA that is not deductible.

At present, Spain is the European country that less IVA collects, which is indicative of the high existing fraud in our country. Property would have much more to be ambitious and to reorient its objectives, moving the magnifying glass of the investigation from workers and SMEs towards the great enterprise corporations of our country, instead of to choose to raise the tax.

All it makes think that the collection by IVA in this second semester will be minor who the governmental forecast, due to the advance payment of the purchases of durable goods (automobiles and houses, mainly), as well as to the contraction of the consumption derived from the loss of spending power by the ascent of prices or other causes like unemployment, the wage cut of the civil servants or the freezing of the pensions. In the long term, it is probable that the collection increases thanks to the ascent of the types when the economic recovery takes place.

Exiling false beliefs
The false belief generalized that exists the collapse of the collection by IVA responds to the strong fall undergone by the real estate sector, nevertheless, nothing else far from the reality. Parón registered in the residential market in these two last years only justifies a loss of the income by IVA of the 10 percent, equivalent to about 2,243 million Euros.

In 2007, zenith of the real estate phenomenon with the greater number of transaction of new houses of history, the income of IVA by these operations ascended to 5,219 million Euros, which supposed the 8.3 percent of the total collected by this tribute. Nevertheless, once deflated the bubble, it represented only a 7.5 percent. The logical thing would be that this sector was lost fiscal weight in proportion to the slope of the sales. What is happening?

To remove more starting off for the IVA
With these numbers on the table, we see how the causes of the collapse of the collection by IVA do not have to be attributed exclusively to frenazo real estate or the economic recession, but rather to the fiscal evasion, that are accentuated at time of crisis, and to the lack of effectiveness of the Tributary Agency in the fight against the fraud.

At the moment, the economy submerged in Spain ascends to 245,000 million annual Euros, which supposes the 23.3 percentage percent of the GIP, that is to say, ten points over our European neighbors who move in rates of fiscal evasion around the 13 percent, with more profitable numbers of collection by IVA.

Llama the attention to observe how other countries with types of IVA lower than ours, like the United Kingdom or Luxembourg, in 2007 took advantage of more efficient form the consumption deprived like taxable matter; countries with types superiors to the Spaniards even removed the double from benefit to this tax. What we are making bad?

Alternatives to the tax rise and social cuts
Doubt that does not fit before approving cuts social or raising this tribute, that burdens the same to all the citizens regardless of its spending power, other more effective measures would exist to alleviate the public deficit and to improve the social financing of the public administrations and benefits, without needing exaggerating on the most underprivileged groups or realizing drastic plans of adjustment.

Between these alternatives, it emphasizes over all the necessity to fight of effective way against the economy submerged in our country, allowing to the technicians of Property who assume majors responsibilities to reduce the fiscal fraud and to improve the control of the public cost by means of the creation of a Technical Final stage of Property.

Of this form, the economy submerged Spanish until levels of the European average could be increased the yield of the IVA and be reduced, which would allow to annually collect about 38,500 million additional Euros (annually taxes and defrauded quotas of the Social Security are escaped 88,000 million Euros in), that would serve to alleviate to the public deficit and the strong indebtedness.

Besides this measurement, our measurement stars, permítanme the license, happens among others to prohibit the sales in short positions against the Spanish National debt, since it causes a cost overrun in the financing of the State superior to the 1,400 million Euros, pernicious effects.

Another tax collecting option would be to increase in five points the tax type of 300 banking organizations, which could contribute other 1,400 annual million. The recovery of the Tax on the Patrimony of the great fortunes would be also very effective, since it would affect to 47,614 contributors with individual patrimonies net superiors to 1.5 million Euros, which could contribute to the far from negligible number of 1,240 million every year.

Another solution to the high deficit of our economy would be the modification of the Law of Institutions of Collective Investment, to include a new requirement that establishes a maximum limit of participation in a Society of Investment of Capital Variable (SICAV), with the purpose of to avoid the abuses of familiar patrimonies.

Also, the technicians of Property we defend the modification of the tables in rent from 100,000 net Euros, so that it is increased to the marginal type two or three points (of the 43 percent to the 45-46 percent) for annual income net superiors to these 100,000 Euros. In addition, from 300,000 Euros it would be increased to the 43 percent, that are the present maximum type, to the 50 percent.

Also we pleaded for the elimination of the advantages of the regime of the rent of the saving to the speculative patrimonial gains and of the advantages which the resident foreigners with income of up to 600,000 annual Euros enjoy.

Finally, the technicians we defend the application of new taxes and environmental rates that burden the CO2 emissions of the companies and individuals, fossil fuel use the polluting, residues or the use of plastic bags, with important deductions that favor the innovation and the investment in cleaner productive systems.

With this set of measures, we are convinced that it would be contributed to alleviate the strong public deficit of the State without needing exaggerating on the weakest groups, like are the 18.5 million mileuristas, between pensioners, independent employees and, that are those that truly will pay the ascent of the IVA.

How it will affect the consumer

The experts of the Organization of Consumers and Usuarios (OCU) consider that the ascent of the IVA will suppose of average a cost of 288.54 Euros to the year by home. Nevertheless, the Spanish Confederation of Organizations of Housewives, Consumers and Usuarios (CEACCU) calculates that this number still more will be lifted and locates the additional cost by the increase of this tribute in 354 annual Euros. “Each family will use, like minimum, 30 Euros (without considering probable raised of prices or tariffs) to more arrive in order month buying the same�, assure from CEACCU. One of the most problematic aspects will be the IVA of the provisions, mainly those of telephony or electricity.



Jose Maria Mollinedo
Secretary General of the Technicians of
Property (GESTHA)