He Sánchez Government veto on VAT reduction in the countryside since the farmers had succeeded in establishing a majority in the Congress of Deputies without needing the votes of the PSOE, as announced by OKDIARIO. Concretely, the amendments that the Executive blocked were based on the proposals and demands that the sector maintains in its demonstrations And demonstrations and which was presented to the House by different groups after several meetings with representatives of the sector.
In this case, the amendment vetoed by the government had been presented by the People’s Party and envisaged applying the minimal type VAT allowed to energy and the raw materials that producers use to carry out agricultural, livestock or forestry activities, since the measure would entail a cost of 796.5 million euros.
On July 5, the PP presented to Congress a bill aimed at temporarily reducing the VAT that affects agents in the agri-food sector, which has a direct impact on the prices of products such as food, energy and fuel, as well as in the agri-food sector. raw materials necessary for agricultural activity.
In addition, the proposal provided for the granting of state aid “minimis” or small subsidies to farms in crisis to ensure their continuity in the production cycle.
Sánchez opposes VAT reduction for campaigns
However, the government exercised its constitutional right of veto on the parliamentary treatment of this proposal, arguing that it would modify the General state budgets by reducing income or increasing public spending.
The Executive justified its decision by emphasizing that current VAT regulations already provide for reduced rates for goods and services intended for agricultural production.
In addition, Executive Sánchez indicated that he did not consider it feasible to apply a VAT reduction to supplies such as electricity, fuel or fuel, even if they are used by agricultural producers, since they would not fall into the category of goods specifically intended for agricultural production according to the regulations in force. This decision blocks the possibility that the PP proposal will be debated in Congress.
“Energy, fuels and fuels are considered goods of general use and not goods used in the agricultural production “I would be covered by the reduced rate,” states the justification for the veto.
Unión de Uniones, the second most present agricultural association in Spain, met with the PP on April 2 in person and with Voice on the 9th of the same month electronically to formalize the support. “If we have enough support, we will succeed even if the government coalition opposed“, the peasants then told this newspaper that they did not have Sánchez’s veto.
During his meeting with Socialist group in CongressThe Union of Trade Unions proposed these measures to the government party, but it limited itself to assuring it that it would study them carefully, without any clear promise. For this reason, the agricultural sector tried to bypass the PSOE and turn to the rest of the parties present in the Chamber.
