Spanish Government Limits Cash Withdrawals to €1,000
The Spanish Government acted today to cap cash payments at €1,000, down from the current cap of €2,500. Anti-fraud measures enacted today include a VAT information and increased regulation of deferred payments.
The government is working on measures against fraud, including limiting the payment in cash to 1,000 euros instead of the current 2,500. The decree is set to be approved by the Council of Ministers next Friday. The Ministry of Finance admits it could be delayed.
The action also includes the immediate provision of VAT to take effect on January 1, 2017. The Minister of Finance and Public Service, Cristóbal Montoro, advanced a few days ago that the Government would implement new measures to control the settlements of this tax.
The actions are marketed by officials as a fight against fraud. The Treasury hopes to receive more money via tax payments with the new initiatives.
Spain is not the only country to recently make moves targetting cash. India’s well publicized banning of old 500 and 1000 rupee notes received worldwide press, while Venezuela’s move to limit cash dispensing to $5 in that country ravaged by economic turmoil.