Business taxes to be cut by 5pc within two years

22 November 2005

MADRID — Taxes on larger businesses are to be cut from 35 percent to 30 by 2007.

Smaller and medium-sized businesses will also benefit from a reduction in taxes to 25 percent.

Jose Luis Rodriguez Zapatero announced the cut in taxes to improve Spanish competitiveness.

The lower rates of taxes should come into operation by 2007.

The announcement was made at a conference organised by The Economist magazine.

Zapatero told delegates: “We want to put ourselves in a position like other countries who are competing internationally.”

The move was met with approval in many sectors.

The Spanish daily La Vanguardia called it “prudent” in a headline on Tuesday.

[Copyright EFE with Expatica]

Subject: Spanish news