The Constitutional Court admitted proceedings this Tuesday for a conflict between constitutional bodies initiated by the Government of Pedro Sánchez against the Senate. The conflict arose in relation to an agreement made by the Table of the Senate on November 21, 2023, which considered a bill repealing the Inheritance and Donation Tax for processing, against the government’s wishes.
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.
The Popular Party proposed eliminating the Inheritance and Donation Tax in all autonomous communities of Spain last December. 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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