Spain's decision to impose income tax on minimum wage earners has sparked a major political rift.

The Ministry of Finance argues that the increase in the minimum wage to €1,184 justifies taxation, as most earners will still benefit from exemptions.

However, coalition partner Sumar and other leftist parties strongly oppose the move, citing fairness concerns.

They argue that recent tax breaks for landlords contradict the decision to tax low-income workers.

The opposition party, PP, has joined forces with Sumar to block the measure in Congress.

Meanwhile, Spain remains one of the EU countries with the lowest tax burden on low-income earners, at just 6.7%, far below the EU average of 19%.

The debate has overshadowed the government's achievement of a 61% minimum wage increase since 2018.