MADRID: Spain will cut income tax in 2015 as part of a wider reform of the country's tax system, Prime Minister Mariano Rajoy said on Monday.
Tax reform is at the heart of Rajoy's efforts to underpin a tentative economic recovery and help put close to six million Spaniards back to work.
Asked in a television interview if he would cut income tax this year, Rajoy said: "Yes, but it will take effect in 2015. This is a yes because it will be approved this year."
He said the rate change would likely be sent to Congress in March or April, after a group of experts presents its recommendation on the new tax system.
Spain's government has said many times it wants to cut direct levies, such as the income tax, and instead increase the take from indirect taxes, such as consumer or energy taxes, to boost state income without hurting consumption and growth.
Rajoy, breaking a campaign pledge, increased income tax after a few days in office in December 2011. He later passed tough spending cuts and reformed labour laws and the public pension system, angering cash-strapped Spaniards.
"I don't plan any spending cut on top of those already foreseen this year because I am convinced that we will have growth and an increased tax take," he said on Monday.
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