The challenges that occur in the economic context, such as inflation, the escalation of interest rates, supply problems or geopolitical conflicts, accentuate the role of regulation and its ability to guarantee a solid regulatory framework on which the companies can project and grow. In addition to providing certainty and stability, regulation is, in turn, decisive for the process of growth and transformation of the organizations themselves. So much so that 72% of corporations say that the legislation needs to focus on promoting the energy transition and the digitization of companies.
In light of the results that emerge from the latest ‘Business Pulse’ survey, carried out by KPMG and La Vanguardia, in addition to promoting digital transformation and the energy transition, almost two out of three managers (61%) highlight the efficiency of the public spending as another of the priorities on which regulation should focus, being the second option that obtains the highest score. At some distance, 39% of the companies that participated in the Pulso Empresarial survey and which account for more than 25% of the Catalan GDP, pointed out the improvement of administration as another of the most outstanding priorities.
Delving into the role of regulation around ESG issues, 72% of companies (based or operating in Catalonia) acknowledge that the European Union’s sustainability commitments are having a “high” or “high” impact. medium” in its business strategy. An example of this is the tax on plastics or the EU Taxonomy regulation, which is presented as a tool to boost the competitiveness and sustainable future of corporations.
When asked about the measures on which tax regulation should focus, taking into account the instability of the current environment, 56% of businessmen point to lowering VAT. Additionally, the same percentage highlights the reduction in Corporate Tax and half of the organizations based or operating in Catalonia point to a reduction in personal income tax (50%).
For their part, 33% of companies acknowledge that the minimum taxation of 15% in Corporate Tax will have a “high” impact on their growth expectations, while 39% indicate that this will be “medium”.
In light of the results that emerge from the survey, the establishment of anti-crisis measures carried out by the central government to alleviate the effects of inflation or the impact of the conflict in Ukraine show room for development: 39% of companies qualify as “low” the degree of effectiveness of these anti-crisis measures and 28% as “medium”. Only 11% affirm that the impact of these actions is being “high”.
In short, there is no doubt that regulatory and tax developments are taking on greater prominence in an economic context experiencing unprecedented volatility. In this sense, an agile, flexible and coordinated response by the national and European authorities will be essential to safeguard financial stability and help companies to extract the opportunities that prevail in the environment.
