15 expert proposals for tax reform

The commission of experts advocates a rise in diesel taxes to bring them into line with petrol.

The commission of experts for the reform of the Spanish tax system proposes to bring the diesel rate into line with the petrol rate "in the period deemed appropriate by the Government". In its report, the commission chaired by Manuel Lagares points out that this increase in the tax burden on diesel would be necessary in order to achieve environmental objectives and is also "reasonable in order to finance a reduction in taxes on the labour factor". He also stresses that the main core of the proposed reform of environmental taxes must "necessarily" be based on a profound modification of energy taxation, which sets the tax bases on the basis of potential carbon dioxide emissions and the energy content of the corresponding products, "thus guaranteeing the neutrality of the tax system in consumers' choice of the various energy sources, which is why an "in-depth" modification of the tax on hydrocarbons is necessary. With regard to the Electricity Tax, the committee proposes replacing its current base, which refers to the amount invoiced, with the number of kilowatt-hours consumed, so as to encourage energy efficiency in consumption. In parallel, it recommends the abolition of the Tax on the Value of Electricity Production, which was created to help finance the tariff deficit. However, it considers that this tax has no environmental component whatsoever, but is a "purely revenue-raising instrument that ends up affecting the consumer". RAISING THE TAX ON ELECTRICITY. To compensate for this suppression, the committee advocates an increase in the electricity tax and the integration of the levy for the use of inland waters in the production of electricity into the latter. However, it stresses that this increase would require modifying the current transfer of 100% of the net collection of the Electricity Tax to the autonomous communities so that this would not be the case. In addition, it proposes the joint reform of the tax on the production of spent nuclear fuel and the tax on the storage of spent nuclear fuel and radioactive waste. EUROPA PRESS