Friday, July 1

Direct | The lowering of VAT to hairdressers marks the final debate on the Budgets in the Senate

The decision of the President of the Senate, Ander Gil, from to allow or not to vote to lower the VAT to the hairdressers This Tuesday will mark the final debate on the 2022 Budgets in the Upper House, where they could be finally approved.

The proposal to lower VAT on services hairdressing and aesthetics of the general type (21%) to the reduced (10%), collected in seven amendments to the Budgets registered by both parties, it has stolen prominence from the accounts in the last days of processing.

These amendments were vetoed by the Government for reducing income, but this Monday, the Senate Board -with the key vote of PNV, despite being a priority partner of the Executive-, rejected that veto, which, in principle, allowed them to vote in the Full.

However, the Government has expressed its disagreement with this rejection, which leaves the decision of whether or not to vote on the amendments in the hands of the President of the Senate, an issue that everything indicates that it will be resolved in a favorable way for the Executive.

Beyond the economic impact of the measure should it go ahead, the key is that it would alter the budget calendar, since any change in the accounts would mean that they would have to return to Congress in the week of December 27, something that would not is planned.

Budget Calendar

Despite the controversial VAT on hairdressers, everything indicates that the Budgets will not incorporate any of the proposals registered in the Senate -almost 4,000 amendments- and they will be definitively approved this Tuesday, without having to return to Congress.

In fact, PSOE, PNV and Bildu did not present amendments in the Senate and ERC, which did, announced that it was withdrawing them after reaching an agreement with the Government on the Audiovisual Law. The four formations have an absolute majority in the Upper House, which guarantees the approval of the accounts.

These parties will be joined by the Gomera Socialist Group and, predictably, other small formations such as the Aragonese Party, whose priorities have already been negotiated and included in the original text of the Budgets.

The vote of the accounts, the second of the coalition government, It will be carried out electronically and the results will be revealed in the early afternoon, at the beginning of the government control session, in which its president, Pedro Sánchez, will be present.

The draft General State Budget Law for 2022 will thus be approved in time to enter into force on January 1, which is the second consecutive year of budgetary normality after several irregular years.

The 2022 Budgets include the highest spending ceiling and the highest social spending in history, partly due to the incorporation of European funds, and also the highest collection forecast.

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Among the income measures, it stands out the establishment of a minimum effective rate of 15% in corporate tax for large companies or the reduction of deductible contributions to individual pension plans to 1,500 euros.

Among spending, the rise in pensions with the CPI and the salary of officials by 2%, as well as housing and cultural bonds or 40,000 million investment.

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