A major rift has emerged within Spain's coalition government over the taxation of the minimum wage.

The Ministry of Hacienda, led by María Jesús Montero, has vetoed a proposal by Sumar to exempt minimum wage earners from income tax, citing its impact on state revenues.

In response, Sumar, led by Yolanda Díaz, plans to join forces with the opposition People's Party (PP) to overturn the veto in the Congress.

This alliance could create a majority to push the proposal forward, isolating the Socialist Party (PSOE).

The dispute stems from a recent increase in the minimum wage to €1,184 per month, which now exceeds the tax-exempt threshold.

While Hacienda argues that the tax is justified, Sumar and the PP claim it would unfairly burden low-income workers.

The outcome of this political standoff could set a precedent for future coalition dynamics.