The AHRESP has called for the extension of the reduced VAT rate to include soft drinks and alcoholic beverages, following the modifications made in 2016. Despite these changes, these beverages remain subject to the maximum rate.
The organization argues for a consistent VAT rate across all beverages. Additionally, it advocates for a 50% VAT deduction on accommodation and meal expenses incurred by corporate and business taxpayers, irrespective of the purpose.
A 100% VAT deduction is also recommended for meal and accommodation costs associated with event organization. Furthermore, AHRESP appeals for an exemption on the single-use packaging levy for ‘drive-thru’ and ‘delivery’ services, due to the nature of these transactions.
To boost competitiveness, AHRESP suggests lowering the corporate income tax rate and adjusting personal income tax brackets to align with recent changes in withholding tax tables.
Among the proposed 30 measures are tax incentives for investments, reduced autonomous taxation, and an increase in the annual turnover limit for VAT exemption from €15,000 to €50,000.
Addressing the housing crisis, AHRESP recommends reducing property income taxation from the current 25%, exempting housing support for workers from IRS and TSU, and offering tax incentives for constructing employee housing.
“When companies build properties exclusively for worker housing, construction-related costs should be VAT-exempt,” AHRESP stated.
They also propose implementing an offset system between individual and company contributions and Social Security, allowing the use of credits to settle debts owed to this institution.
Regarding business capitalization, AHRESP calls for support for sole proprietors to form commercial companies and points out that existing instruments from the Banco de Fomento have not favored micro and small enterprises.
The document stresses the creation of economic stimulation programs for low-density areas, support for migrant integration, and the enhancement of tourism professions.
