MADRID: The International Monetary Fund (IMF) has said that Spain should expand the indirect tax burden to boost the economy and put debt on a downward path.
The IMF has recommended that Spain raise excise duties and environmental levies, and gradually phase out value-added tax (VAT) concessions. The Fund said in its 2015 Article IV consultation report for Spain that these measures would bring the country’s tax collection efforts more in line with those of other European countries.
The IMF noted that reforms to shift the burden of taxation from direct tax to indirect tax have already begun. The IMF said that the Government’s decision to cut the corporate tax rate from 30 percent to 28 percent this year, and to 25 percent from next year, will make it easier for companies in the country to expand.
