GO
Loading...

Enter multiple symbols separated by commas

Spain: Tax cuts in 2014 for low-income earners

A man has his breakfast at a soup kitchen in Barcelona on December 17, 2013.
Lluis Gene | AFP | Getty Images
A man has his breakfast at a soup kitchen in Barcelona on December 17, 2013.

Spain's finance minister has told a business newspaper that the government plans to cut income taxes for low-income Spanish families in 2014 but that citizens in higher income brackets won't get the same windfall until the country's economy emerges from a prolonged crisis.

In an interview published Thursday, Cristobal Montoro did not tell the Expansion newspaper how much taxes will be lowered for low-income earners or specify the income levels they must have to receive the benefit.

Montoro said the administration of Prime Minister Mariano Rajoy predicts the Spanish economy will expand by 1 percent in 2014 after a punishing recession lasting years.

(Read more: Why Spain's bailout exit is not premature)

Rajoy has pushed through waves of austerity-driven, unpopular tax hikes and government program cutbacks since taking office in 2011, to reduce Spain's budget deficit.

By The Associated Press

Contact Europe News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Europe Video

  • Corruption is a dying industry: CEO

    V. Shankar, CEO of EMEAA for Standard Chartered, says that corruption is not an African issue but global and that African citizens themselves will be the greatest at rebelling against corruption.

  • Deal-making in the chip industry

    Alex Gauna, senior research analyst & managing director at JMP Securities, says that Intel faces a number of problems with its exposure to the PC industry, as it is in secular decline.

  • Total CEO: Volatility is embedded in oil market

    Patrick Pouyanné, CEO of Total, says that oil price is not just a question of supply and demand, but of geopolitics, especially with turmoil in the Middle East.