The IMF Asks Spain To Increase VAT And Decrease Corporate Tax Rates

The International Monetary Fund (IMF) has advised Spain to increase its income through indirect taxes, including VAT taxes, to reduce the deficit. The IMF also suggest that Spain should maintain its public services and reduce costs of employment. Nevertheless, it admits that the increase in indirect taxes will have a negative impact on prices and on the ‘most vulnerable’ in society. In a report released today, the IMF suggested that “Spain has turned the corner,” and that the “recovery was here to stay” in Spain. The declarations come at a time when the country currently has nearly 6 million people unemployed. The IMF also suggested that there is room to lower the current 30% corporate tax rate, but not below the European average of 20%.

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