The IMF asks the next Government to raise VAT and cut spending on pensions "to benefit young people"

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The International Monetary Fund (IMF) asks the next Government to increase its tax revenues and to do so especially through VAT, that is, toughen the tax. To this end, the body led by Kristalina Georgieva proposes that Spain carry out a review of the tax deductions offered in the Value Added Tax. Likewise, the IMF points out the need for cut pension spending, since all the measures that have been taken so far have been on the income side, but none in this other way, which would also alleviate the burden that the “younger” generations will have to suffer. “That’s what’s needed for the future,” he adds.

The Fund thus returns to two requests that it has already made in the past, and that it now makes again before the formation of the next Executive. In addition, he asks that fiscal consolidation be a “priority” and that he not prolong the anti-inflation measures that expire at the end of the year.

“Our recommendation that let themselves expire because energy prices have normalized to a greater extent,” said the director of the Fund for Europe, Alfred Krammer, and his team at the press conference they offered this Friday in Marrakech within the organization’s annual meeting.

In fact, in its economic forecasts that it also published this week in the Moroccan city, the IMF estimates that Spain’s deficit will be reduced next year to 3%, which would mean complying with the European fiscal rules that will once again be into effect next year. But in the reduction from the 3.9% planned for this year to that 3% in 2024 The withdrawal of these anti-inflation measures is essential.

The organization is also concerned about the absence of a Government that clearly outlines the policies that will be established in the short and medium term. AND “this uncertainty “It will persist until there is a new Executive,” Krammer noted. To all this he has added a request for the next Government to apply structural reforms that “foster economic growth,” as well as increased productivity.

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