Spanish political groups criticize tax policies and inflation impact

Political leaders in Spain are criticizing current tax policies, alleging that inflation is being used to increase government revenue at the expense of the middle class and the self-employed.

In the Valencian Community, the PPCV has called for the urgent deflation of Personal Income Tax (IRPF). Spokesperson Javier Gutiérrez argued that failing to adjust tax brackets to inflation constitutes a “hidden tax increase” for freelancers and SMEs. He noted that while inflation has risen approximately 25% since 2018, the IRPF has not adapted, leading to higher proportional tax burdens despite nominal wage increases.

In Navarra, UPN President Cristina Ibarrola reported that tax collection in the region grew by 49% between 2019 and 2025, significantly outpacing both the cost of living and average wage growth. Ibarrola claimed that the average taxpayer in Navarra now works 231 days per year to pay taxes. She also highlighted economic concerns, including a decline in industrial production and a projected GDP growth for Navarra in 2026 that is the lowest in Spain.