PP Pledge to lower taxes before next election

 

The New Government of will reduce taxes to a level lower than they were when the PP were voted into owere before the next general election in 2015, Minister of the Treasury Cristobal Montoro announced in a radio interview earlier today.

"We believe in stimulating our economy cutting taxes... At the end of this legislature all of us will be paying less tax."

Incoming Prime Minister, Mariano Rajoy, raised property and income taxes at the end of December, just10 days after taking office, despite repeated election promises that he would not do so. The PM defended the move by claiming that the previous PSOE Government had not reported the state of the country's finances accurately.

Spain's 2011 budget deficit probably grew to 8% of GDP compared to a target of 6%, the government said on 30th December.

The Minister also said how he intends to impose caps on spending and borrowing by Spanish regional governments with penalties for those who don't comply, similar to the EU's latest proposals for imposing budget discipline on members of the single currency area. He said the government has no plan to increase the sales-tax rate.