A heated debate over the taxation of Spain's minimum wage (SMI) has created a rift within the coalition government.

Sumar, the junior partner, is pushing for the SMI to be exempt from income tax, arguing it is a socially just measure.

The PSOE, led by Prime Minister Pedro Sánchez, insists on maintaining the tax, citing fiscal responsibility and the need for progressive taxation.

The dispute intensified after the Congress approved proposals to exempt the SMI from tax, giving the government 30 days to decide whether to veto them.

Sumar has vowed to fight "until the end," while the PSOE accuses them of "fiscal populism.

" With tensions high, the outcome could deeply impact the coalition's stability.