Getty Images, Europa Press, TMvectorart Tax Blow to Thousands of Spaniards: They Will Have No Choice but to Pay
Blow for workers earning the minimum wage: they'll have to pay income tax, and this measure is generating significant controversy
This Tuesday, Hacienda confirmed that, for the first time, workers earning the Minimum Interprofessional Wage (SMI) will have to pay taxes on the Personal Income Tax (IRPF). Until now, every time the SMI was increased, the IRPF exempt minimum was adjusted so that beneficiaries wouldn't have to pay taxes.
However, this year, Hacienda has decided not to make that adjustment, meaning that SMI recipients will have to pay taxes. With the recent increase of the SMI to 1,184 euros per month in 14 payments, the annual salary amounts to 16,576 euros.
Hacienda Requires SMI Workers to Pay IRPF
This amount exceeds the limit set for paying IRPF, which is 15,876 euros annually. Therefore, workers receiving the SMI will have to pay taxes on the difference, approximately 700 euros. Undoubtedly, a real blow for many citizens.
In previous years, every time the SMI was increased, Hacienda adjusted the IRPF exempt minimum so that beneficiaries wouldn't have to pay taxes. This year, however, that adjustment has not been made, which means that SMI recipients will have to pay taxes for the first time.
Labor's Reaction to Hacienda's Measure: The Controversy Is Served
The Minister of Labor, Yolanda Díaz, has expressed her displeasure with this decision. She has pointed out that social justice should start from the top and not from the bottom. She has suggested that workers with higher salaries should contribute more.
Meanwhile, from Hacienda, the measure has been defended, arguing that it is important for all citizens to contribute fairly to the support of public expenses. Additionally, Pilar Alegría (PSOE) has commented on this controversy between the two government partners, stating that "she advocates for teaching fiscal justice."
"Saying that a part goes to Hacienda, no. That part goes directly to improving the public services that we all use." This decision has caused an intense debate between the two ministries, reflecting the differences in their approaches to taxation and fiscal justice.
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