The Constitutional Court has accepted proceedings related to a conflict between constitutional bodies initiated by the Government of Pedro Sánchez against the Senate. The controversy arose in relation to an agreement made by the Table of the Senate on November 21, 2023, which considered repealing the Inheritance and Donation Tax for processing, despite government opposition.
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 this matter. Article 134.6 of the Constitution states that proposals or amendments involving budgetary changes require government consent for processing.
Meanwhile, last December, the Popular Party proposed eliminating the Inheritance and Donation Tax in all autonomous communities of Spain. Many regions already have significant discounts on this tax, with some regions still levying it. The total elimination of the tax would require compensation from the State for lost revenue, an aspect challenged by the Government. The Inheritance Tax currently contributes around 2.8 billion euros to tax collection annually, representing 1% of total tax revenue.
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