Businessmen and concerted reject the increase in the Government's VAT: “It will destroy companies and jobs”

Businessmen and concerted reject the increase in the Government's VAT: “It will destroy companies and jobs”

CEOE explains that ending the tax exemption in private health and education would also have “little collection efficiency”

Businessmen and concerted reject the increase in the Government's VAT:

Entrepreneurs, freelancers and associated schools reject the VAT increase in which the coalition government is working. Both the modification of the super-reduced and reduced rates advanced by this newspaper, as well as the application of this tax in the services it provides in education and private health.

“The areas and sectors that would contribute the most income with an increase in rates would be food and fresh products, which are at 4%, and restaurants, which are at 10%. The restoration is one of the most penalized by the crisis and the last thing that was missing is that they will raise the VAT to 21%. It would be absolutely harmful “, explains Alfredo Bonet, secretary general of the Círculo de Empresarios.

An increase of these rates, he develops, would have a great collecting power, a situation that has already been pointed out on numerous occasions by the Independent Authority for Fiscal Responsibility (AIReF) or the Bank of Spain. But the problem, says Bonet, is the timing and the effect it would have on the economy in 2021. Lorenzo Amor, president of the Association of Self-Employed Workers (ATA), is explained in a very similar line, who affirms that the Government is “making a mistake. the shot “, that” any tax increase must be extended “because, otherwise, there will be” a catastrophe in consumption .

Against the rise in health and education

From CEOE they are very critical of the possibility of the Government ending the VAT exemption applicable to hospital and educational services when they are provided by a private entity. ” This measure would have little collection efficiency , since it would have a very negative impact on the demand for private health and education services by consumers, even more so in an environment of economic recession such as the current one; and it would lead to a certain destruction of companies and employment, “says the employer in a statement published this Friday.

And to all this is added that up to seven employers of private and concerted education have come together to warn that applying VAT in the midst of the economic crisis derived from the pandemic ” would mean an unbearable increase in the cost of this service for families , which, in the In practice, it could lead to the disappearance of the sector. ” Cece, Cicae, Acade, Anced, Cecap, Catholic Schools and Uecoe also warn that this measure would result in the displacement of “an incalculable number” of students to public education, which would increase public spending by a very large amount. higher than that which would be collected through this tax.

Pedro Huerta, general secretary of Catholic Schools, explains that parents who take their children to subsidized centers would have to pay 21% more for the dining room, for extracurricular services, for school transport and for schooling from zero to three years and in Baccalaureate, which are not financed with public funds.

This would generate, they calculate, an increase in fees of at least 100 euros per month per family, which “suffocates” the users of a model where 27% of the students study and which is seriously threatened by the educational reform of the Government, the 'Celaá law'. If this modification becomes a reality, which the employers frame within a “strategy” by the PSOE and United We Can to eliminate the concerts, the Executive would go against the principle of equal opportunities and the Constitution. “The effect of social cohesion generated by the concerted in the most disadvantaged students is eliminated,” Huerta denounces.

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