The Constitutional Court of Spain has admitted proceedings for a conflict initiated by the government of Pedro Sánchez against the Senate. This conflict arose over an agreement made by the Senate on November 21, 2023, to repeal the Inheritance and Donation Tax for processing. The government argued that this agreement could violate certain constitutional articles and Senate regulations regarding budgetary powers.
Legal sources reveal that María Luisa Balaguer, a professor of Constitutional Law and a member of the majority sector of the Court, has been involved in discussions regarding the matter. Article 134.6 of the Constitution states that proposals or amendments involving budgetary changes require government consent for processing.
Last December, the Popular Party proposed eliminating the Inheritance and Donation Tax in all autonomous communities of Spain. Many regions already have significant discounts on this tax, with some regions still levying it. The total elimination of the tax would require the State to compensate the regions for lost revenue, an aspect challenged by the Government. The Inheritance Tax currently contributes around 2.8 billion euros to tax collection, representing 1% of total tax revenue.
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