Santa Cruz de Tenerife, 12 Feb. (Europa Press) –
The Popular Party of the Canary Islands has voiced its “strong opposition” on Wednesday to the Treasury’s decision to prevent adjustments to personal income tax in line with the new interprofessional minimum wage (SMI), which was approved last Tuesday by the Council of Ministers, causing it to no longer be exempt from taxation.
Jacob Qadri, the general coordinator of the Popular Party of the Canary Islands, remarked that the increase in the SMI was determined “without consensus, and it will adversely impact thousands of Canarians who previously were exempt from taxation but who will now be liable for personal income tax.”
The popular spokesperson pointed out that the Finance’s decision not to modify the income tax, so that the SMI is taxed for the first time, represents “a significant profit” for the Sánchez Administration, “as the state will effectively pocket nearly 50 percent of the increase, specifically 49.45 percent.”
Qadri elaborated that “the SMI rises from €15,876 to €16,576 per annum, an increase of €700; however, the employee will actually receive only €353.81. Due to Sánchez’s unjust decision, the Government will claim €213.99 from the employer and €346.19 from the employee, totalling €560.18 without lifting a finger.”
In his view, “this is a cunning strategy by the Government, which increases the minimum wage but has it funded by entrepreneurs and employees, allowing the Minister of Finance to seize most of that increase.”
Qadri believes that “the primary beneficiary is again the administration, which previously sought to undertake the same action last year but was thwarted thanks to the intervention of the Popular Party’s president, Alberto Núñez Feijóo, compelling the government to correct its course and preventing the increase from negatively affecting workers.”
The general coordinator of the Popular Party of the Canary Islands also reminded that his party has submitted two propositions in Congress and the Senate urging the Government of Spain to address the excessive taxation arising from the increase in the SMI, thereby preventing the central government “from profiting at the expense of workers across the Canary Islands and the rest of Spain.”
