MADRID, 31 Mar. (EUROPA PRESS) -

The Government has vetoed the parliamentary processing of a bill of the PP by which it sought to recover the personal income tax deduction on the purchase of habitual residence, since in the Executive's opinion its application would mean stopping 817 million euros from entering the public treasury .

The PP bill sought a change in the personal income tax regulations so that taxpayers with incomes of up to 60,000 euros could deduct up to 5,000 euros per year on the purchase of a habitual residence.

The Popular Group justified this initiative given the sharp rise in interest rates, which have had an impact on an average increase in variable rate mortgages of between 250 and 300 euros per month.

The measure would be effective for taxpayers who had acquired their home before January 1 of this year or who had paid, also before this date, amounts for rehabilitation works or expansion of the habitual residence, yes, provided that they are Works were completed before January 1, 2025. Works to enable housing for people with disabilities are also included.

But the Government, which in accordance with the Constitution has the power to stop legislative initiatives that alter its Budgets, either due to increased spending or decreased revenue, has just sent a letter to Congress expressing its disagreement with the debate on the PP proposal .

In its letter, to which Europa Press has had access, the Government details that each year 11.12 million personal income tax returns are submitted with a taxable base of less than 60,000 euros and those with a mortgage loan, which is the ones that are would apply the measure, there are 2.27 million.

And he points out that, even considering that taxpayers with income greater than 60,000 euros cannot apply the deduction, the measure would mean a reduction in income for the State of up to 817 million euros.