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Refueling a car in Spain may soon stop paying off

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Refueling a car in Spain may soon stop paying off

The Madrid government wants to raise fuel taxes to speed up decarbonization and bring taxation closer to other European countries.

Crossing the border to refuel a car at lower prices has become a habit for many Portuguese living at the border, but it may soon stop paying off. According to the now famous proposal, the Spanish government intends to introduce a historic increase in fuel taxes to accelerate the decarbonization of the economy in the coming decades.

The Spanish press points to an increase that could be around 20 cents, bringing the tax burden closer to that of the eight main European Union countries on gasoline: Austria, Germany, Belgium, Denmark, Finland, France, the Netherlands and Sweden. as EU-8 in Spain 2050 report. Framework and proposals for a long-term national strategy.

If this increase is confirmed and using the averages for the first quarter of this year as a reference, the price per liter of gasoline in Spain will be only five cents lower than in Portugal. The average cost of 95 unleaded petrol at Portuguese petrol stations in the first three months of the year was € 1.50 and at petrol stations in Spain € 1.25. That is, the difference is 25 cents.

The weight of taxation also shows a large disparity between the two countries: in Portugal, taxes account for 63.2% of the selling price for the population (PVP). In Spain it is 55.1%, which is eight percentage points less. Compared to the group of eight countries cited in the report, the average weight of taxes on gasoline prices is about 63% (in Portugal – 63.2% in the first quarter of this year).

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But it is the tax on diesel that the government of Pedro Sánchez wants to make first in the war against diesel.

Diesel: minus 8 cents

On average, diesel fuel in Spain is 8 cents cheaper than gasoline, and compared to Portugal, the difference is even greater. Once again, if we take the figures for the first quarter of this year as a reference, the price of a liter of diesel fuel on the other side of the border was 1.13 euros. In Portugal, over the same period, a liter of diesel fuel cost € 1.32, or 19 cents more.

The document substantiates such a fuel taxation policy on the need to adapt to new forms of mobility in the next three decades. “There will be fewer private cars and more public cars, more bicycles and more public transport,” the document says.

“Mobility will be transformed with the proliferation of electric vehicles, which will become more economical and competitive, and which will make up the bulk of the Spanish fleet by the middle of the century”, assuming that combustion-engine cars will still exist, especially for freight and intercity transportation. but “more efficient and with fewer polluting fuels.”

new tax
The document, published in May, also provides for the introduction of a new tax on the use of cars. Madrid intends to replace current taxes such as purchase, turnover and fuel taxes with a vehicle performance tax.

PRR funds
In the Recovery and Resilience Plan, Spain has committed about 40% of the € 69.5 billion towards greening, and Portugal 38% of the € 16.6 billion, one of the largest eligible spending areas when using funds from the base. …

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Economy

Fasten your seat belts well. Volatility persists on Wall Street – Stock Exchange

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Fasten your seat belts well.  Volatility persists on Wall Street - Stock Exchange

Stocks on the other side of the Atlantic have experienced another day of high emotions, a real roller coaster, to the point where CNN Business said “investors better tighten their belts because there is no sign of an end to Wall Street volatility.” .

The Dow Jones industrial index fell 0.19% to 34,297.73 points. Remember, on January 5th it reached a level that was not there before, 36,952.65 points.

The Dow Jones index was losing ground in the sell-off move that was seen for most of the session, but in the last hour of trading it managed to turn around, as it did yesterday. However, in the last stretch, he again caught his breath, and he returned to negative terrain.

Johnson & Johnson and American Express, which are the two components of the Dow, fared well after delivering good “forecasts” in their keynote presentations that helped revitalize the index, but not enough to keep it afloat.

The Standard & Poor’s 500 closed down 1.22% at 4356.45. Its all-time high was reached in intraday trading on January 4 at 4818.62 points.

On the other hand, the technology index Nasdaq Composite, which is in the correction zone, depreciated by 2.28% and stopped at 13,539.30 points. The Nasdaq’s all-time high is 16,212.23 points, set on November 22.

Contributing to strong volatility was a two-day Fed meeting that kept investors waiting. Tomorrow at 19:00 in Lisbon, instructions on the monetary policy of the Central Bank will be given, but everything still indicates that the Fed will start raising the key rate in March.

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Investors are also attentive to the presentation of technology accounts. After Netflix on Thursday and IBM this week, it will be Microsoft’s turn today to publish its results after the stock markets close. Tesla follows tomorrow and Apple on Thursday.

Maybe a new rally

Pains and Capital, in a research note that Negosios had access to, indicated yesterday that the sell-off registered last week caused the S&P 500 to lose the equivalent of six months of gains.

“The big question for investors this week is: Where do we go next? First, the market is deeply oversold. The S&P 500 is showing the lowest Relative Strength Index (RSI) reading since the March 2020 crash. However, the market is as oversold as and during the first wave of the global pandemic,” said Graham Summers, chief strategist at Phoenix Capital Management, in the aforementioned “research” by Gains Pains Capital.

“This suggests a bounce is expected. It is highly unlikely that stocks will continue to fall from now on. Instead, we may have a rally after the Fed meeting on Wednesday. extra “foam” from the markets,” he added.

Near debut for the S&P 500

On Tuesday, the S&P 500 reversed its negative trend and entered a bullish field, and if it maintained a positive trend until the close, that would be a feat.

According to Bloomberg data dating back to the early 1980s, the S&P 500 never dropped at least 2% from the previous session for two consecutive sessions before ending up positive. And today was supposed to happen.

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Another interesting statistic is that only eight times – on two consecutive days – did the index fall 1% during intraday trading and then close higher: three times in 2002, three times in 2008-2009 (during global financial crisis), once in 2015. and one in 2020.

“Buy dip”

One of the reasons for the retracement throughout the session and even into the close (just like yesterday) is the fact that many investors take advantage of the dip to buy – so-called “buying the dip”.

“Stock buyers have resurfaced to take advantage of shares at a bargain price after a sell-off sparked by fears of a tougher Fed stance and a Russian military buildup on the border with Ukraine,” Bloomberg notes.

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Broken recovery and high inflation: this will be the year 2022, according to the IMF

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Broken recovery and high inflation: this will be the year 2022, according to the IMF

The recovery of the economy from the crisis caused by the pandemic will slow down in 2022, according to the forecasts of the International Monetary Fund (IMF), published on Tuesday in Washington. Annual global growth will slow from 5.9% in 2021—the highest level since 1973—to 4.4% in 2022 and 3.8% in 2023, a more optimistic trajectory than that recently proposed by the World bank.

The progressive slowdown is due to a “glut of growing cases” that pile up without resolution and exacerbate disparities in the pace of economic recovery in various parts of the world, fueling rising inflation in all major cities. especially the US — and disruptions in global supply chains forcing governments to start tightening fiscal policy to deal with record global public debt close to 100% of global GDP. To all this “burden”, the IMF adds growing geopolitical tensions (especially in Eastern Europe and the Asia-Pacific region), a gap in covid vaccinations (only 4% in poor countries) and a high probability of a multiplication of natural disasters due to climate. change.

Undermining the global economy

It is therefore not surprising that the IMF document released on Tuesday bears the ambiguous title “Hull Overload, Discontinuous Recovery and High Inflation”. Also, in a pessimistic tone, the speech of the Fund’s chief economist, and since last week, the first deputy general director, Gita Gopinath, was published. “Destroyed World Economy”named number two by Kristalina Georgieva in an article she published on the institution’s blog summarizing global trends.

As a result of this “overload” of growing and persistent problems, IMF economists cut growth forecasts for the world and the seven largest economies.compared to what they advanced in the World Economic Outlook (WEO) last October. This January publication is a limited interim update for large countries only, not including forecasts for small and medium-sized countries such as Portugal, which will not be published until April when the new full edition of the WEO is released.

Among the scissors, the highest cuts in growth Brazil (which is decelerating sharply, from 4.7% in 2021 to 0.3% in 2022, already close to stagnation), USA and Mexicoand more moderate for Germany, Canada, China and Spain.

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Some good news for Portugal

Despite lower forecasts, the global dynamics this year will be marked by strong divergence in growth rates.

According to the IMF, the ten largest economies will accelerate in 2022: Germany, Saudi Arabia, the five members of ASEAN (Association of Southeast Asian Nations), Spain, India (which turned out to be the largest economy with the highest growth rates). surpassing China) and Japan. The acceleration in Germany and Spain is good news for Portugal, which has these countries among its main export destinations.

On the contrary, there are 10 other major countries that have slowed down this year: South Africa, Brazil (the most dramatic case since the austerity introduced in 2021 by Economy Minister Paulo Guedes and consecutive interest rate hikes by the Brazilian Central Bank), China. (whose growth will almost halve and remain below 5%), the US, France, Italy, Mexico, the UK, Russia and the eurozone as a whole (slowing down from 5.2% in 2021 to 3.9% in 2022). Some of these countries are Portugal’s export destinations and these forecasts are a warning.

But these forecasts may have to be revised again in April or summer. There are problems that could get worse, the IMF quotes: the development of the pandemic; how China will deal with the real estate crisis and the disruption caused by the zero covid policy; multiplication of natural disasters; the growth of popular uprisings against the high cost of living; and exacerbation of geopolitical tensionswith the rise of Russia and China.

Inflation does not leave us, but next year it will decrease

Restrictions spurring consumer price growth will not ease in 2022. On the contrary, according to the IMF forecast, the surge in inflation will continue this year, and next year there will be only signs of a slowdown.

Some of the components that put the most pressure on the consumer price index, according to the forecasts of the Fund’s economists, will continue to grow: the average price of a barrel of oil of various grades will rise by 12%, the price of natural gas will rise by 58%, and the price of food raw materials will rise by another 4.5%.

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As a result of these price developments, forecasts point to an increase in US annual inflation from 5.3% (highest since 1990) last year to 5.9% this year (new high since 1982). Although at lower levels, a similar trajectory is expected for the eurozone, from 2.6% last year to 3% this year, the highest since 2011. In the case of emerging market and developing countries, the average annual rate will increase from 5.7%. up 5.9% over this period.

Anyway, inflation surge in 2023 slows down, proving to be “short-term”, although the IMF document does not use the word banned in official communications by many central banks. In the euro area, the forecast points to a decline in inflation in 2023 to 1.7%, which is slightly below even the forecasts (1.8%) presented by the European Central Bank (ECB) in support of the strategy approved and confirmed by President Christine Lagarde. ECB. In the US, inflation will fall to 2.7%, still above the Federal Reserve’s target (which wants to control prices at around 2%). In emerging and developing markets, it will decrease from 5.9% in 2022 to 4.7% in 2023.

Monetary tightening hurts: IMF recommends debt restructuring for the most vulnerable

This year, the IMF does not propose a single recipe, emphasizing the diversity of situations and the recommendation that “policies should be adapted to specific circumstances.” Kristalina Georgieva, CEO of the Fund, has already put forward this orientation in a debate held at the World Economic Forum conference in Davos this month. However, he cannot fail to highlight two central trends that will intensify in 2022: greater monetary and fiscal tightening.

Monetary tightening began last year when 50 central banks, mostly in emerging market and developing economies, raised interest rates.followed by some major central banks such as the Bank of England. Interest rate increases are expected to take first place this year. in several banks in developed countries, starting with the US Federal Reserve System (FRS), and that asset purchase programs have been discontinued in whole or in part, with the exception of Japan (which will deal with inflation around 1%). China has also shown itself to be opposed to monetary tightening, but the IMF will release an analysis of the Chinese economy on Thursday after the institution’s latest Article IV visit (allowing for this regular analysis).

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The tightening by the Fed will have global consequences, the IMF warns. The way the Fed communicates the removal of stimulus will or will not allow a correction to a greater or lesser extent. “ordered” in the markets,” said Geeta Gopinath at a press conference following the publication of the forecasts. A correction in some markets is expected or already underway, and some “are seeing high levels of exuberance,” Gopinath added.

“All countries must prepare for tightening financial conditions” and, in particular, emerging market and emerging market countries with more dollar debt will face “shocks,” the IMF document said. The fund advises them to try to negotiate (extend) maturities or even seek international support to restructure their debts. The IMF is calling on the G20 and private lenders to impose a debt moratorium on the 60% of the lowest-income countries that are already at risk of maximum stress.

On the budget side, government accounts will once again be “under pressure in the coming months and years” and governments should once again be “committed to demonstrating a medium-term plan that guarantees a path to debt sustainability,” the Fund advises. Brazil was the pioneer of austerity in 2021, and the award was received by Economy Minister Paulo Guedes during a debate held in Davos, where he stressed that he hoped to lock in a budget surplus in 2021 and that the Central Bank raised the Selic interest rate. several times. The next result, if the IMF forecasts come true, is a sharp decline in growth in 2022, approaching stagnation. Growth will accelerate next year, but only to 1.6%.

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Landlords must report rent by the end of the month. Set this and other IRS dates until the declaration is delivered

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Landlords must report rent by the end of the month.  Set this and other IRS dates until the declaration is delivered

UNTIL THE END OF THE MONTH

CLAIM INCOME

Landlords who are exempt and have not chosen to issue electronic rent receipts must submit a Model 44 return to the Finance Department via the Internet by the end of this month – Sunday 30th. delivered to the department by the following Friday.

And who are these taxpayers who are exempt from electronic income receipts?

These are owners who do not have and are not required to have an e-mail box and who did not receive more than 877,622 euros of rent (double the social support index) in 2021. These two conditions are combined.

Landlords who were 65 years of age or older on December 31, 2021, and taxpayers who receive rent under agreements covered by the Rural Lease Scheme, are also exempt.

UNTIL 15 FEBRUARY

˂ Consult and update your personal page on the Financial Portal with your family composition and other relevant personal items, such as the email address or NIB to which the state should transfer the IRS refund.

˂ Indicate spending on education and training in the interior of the country or in the autonomous region. You can deduct 40% of these fees up to a limit of one thousand euros, and the rent paid for the maintenance of a relocated student is not more than 300 euros.

˂ Tell the finance department about the rent for permanent housing if you have moved to the hinterland. You can deduct up to one thousand euros in the IRS instead of the usual 502 euros.

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˂ Consider the duration of long-term permanent housing leases (contracts of up to two years or more), as well as the termination of such contracts. This type of lease benefits from lower tax rates, which decrease in proportion to the number of years the property is occupied, as agreed with the tenant. This is done through the financial portal.

UNTIL 25 FEBRUARY

CHECK BILLS

It is time to check or report, if your e-invoice portal personal account is not displayed in your personal account, invoices for expenses incurred in 2021. Based on these expenses, the IRS calculates a withholding from the IRS Fee, which reduces the weight of the invoice and increases the government’s possible refund. Thus, in addition to promoting a fairer tax system, the IRS is cutting costs when requesting an invoice with a taxpayer number for education and training, health care, and housing expenses.

There is also a discount related to general family expenses, which includes any fees, up to a deduction limit of €250 per taxpayer (€335 for single parent families). Maintenance payments determined by the court must also be indicated in the declaration according to model 3, since 20% of their total amount can be deducted from the tax. Don’t forget to request an invoice in certain areas of activity corresponding to the percentage of VAT paid in your pocket: 15% for car and motorcycle repairs, accommodation and meals, hairdressing, veterinary activities and gyms and 100% for expenses. with monthly passes for public transport.

Finally, keep in mind that there is a general limit to the set of tax deductions and benefits that follows from the mathematical formula. It varies by household income, the higher the lower the ceiling. Families with three or more children are eligible for an increase in the limit.

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FROM APRIL TO JUNE 30

Open an IRS campaign. It is not recommended to send or confirm the data, if they are subject to automatic declaration, during the first 15 days of the period, since, as a rule, it is during this period that the technical services detect possible errors in the system and correct them. You will not be affected in terms of calculating your tax, but you may be penalized with an increase in the time it takes to settle your return and the corresponding tax refund, if applicable.

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