More Cash Limitations

SPN Euro NotesThe Government has decided to get back to work on its draft bill designed to counter fiscal fraud – it had been put on ice last year.

Basically the draft bill will lower the maximum amount that can be paid in cash from 2,500 euros down to 1,000 euros for business transactions. Individuals will be able to continue using cash up to 2,500 euros, as before.

However, the Government Spokeswoman, María Jesús Montero, who is also the Minister in charge of Hacienda, said that although this new bill is aimed exclusively at business transactions, the Government intends to diminish the maximum cash amount for private transactions, further down the line.

She said that in future cash transactions will be reduced to a minimum so that all movement of capital can be traced.

The present limitations were put in place eight years ago by the previous conservative administration under Sr. Rajoy.

Finally, the draft bill will not only limit cash movements but also, thanks to its anti-fraud nature, bring in around 828m euros which would otherwise slipped past Hacienda. Not only that, it will expressly forbid any future administration from granting tax amnesties something both the socialist and conservatives administration have done in previous years. The last one under Rajoy created much indignation in general given that those possessing large fortunes were allowed to pay tax at only 3% when they came forward, when the average person on a salary is paying 21%.

Editorial comment: the Government (any government) won’t be happy until cash is eliminated thus having full control of all wealth in existence, making it completely impossible not to own a bank account and suffer the interminable bank charges.

(News: Spain)

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