The president of the Community of Madrid, Isabel Díaz Ayuso, announced this Wednesday that her Government intends to eliminate all the taxes that the region had until now.
These taxes, which affect the installation of recreational machines in authorized hospitality establishments, and the deposit of waste, accounted for 3.4 million euros in collection in 2020 (0.7 euros per inhabitant).
The reform must be approved in the Assembly, where the PP will probably have the necessary approval of Vox, and will affect an "obsolete" rate and another that "overlaps" with a State rate of forthcoming approval, so it should be left in suspended in any case when it comes into force, recognizes the Community.
Consequently, the opposition has called the ad "populist".
From tele-Espe to tele-Ayuso
Díaz Ayuso will present his candidacy to preside over the PP of Madrid
It happens this Wednesday.
The announcement comes with great fanfare, and surrounded by the solemnity of a press conference at the Royal Post Office, but is soon contextualized by reality.
As Congress is going to approve a national garbage tax, the Madrid tax was predictably going to disappear, whether the regional executive wanted to or not, so as not to tax the same thing twice.
In the same way, the tax on the installation of recreational machines in authorized hospitality establishments is considered obsolete by the Autonomous Administration itself: it only existed in Madrid, and the Community considers it residual because the bulk of the taxation is concentrated in the tax rate on the game (144.6 million in 2020).
In addition, the region has a third tax of its own, the surcharge on economic activities, but it has not applied it since 2009.
"It is a new neoliberal pantomime," lamented Mónica García, the leader of Más Madrid and of the opposition in the regional Parliament.
“His big announcement is the abolition of taxes that either become state, or were irrelevant.
It is a new marketing exercise ”.
"The announcement is pure smoke," has criticized Hana Jalloul, the PSOE spokeswoman in the regional Assembly.
"Populism".
@IdiazAyuso's ad is pure smoke.
❌ Madrid is the only Community that maintains the tax on catering machines.
❌ The waste tax is overlapped by one at the state level.
❌ The IAE has no surcharge since 2009.
POPULISM.
https://t.co/WpP0YDMGfG
- Hana Jalloul Muro (@jalloul_hana) September 1, 2021
The disappearance of these three taxes will have an insignificant tax impact on the region's Budgets, of more than 20,000 million euros.
According to the data provided by the regional Executive, the rates to be abolished represent 0.02% of the total collection, that is, 0.7 euros per inhabitant compared to a total collection of 3,415 euros per taxpayer.
In 2020, the total taxation for both taxes was only 3.4 million euros.
“We have to get back to leading job creation and recovery. I announce that the Community is going to be the only region in Spain with a common system that will not have its own taxes, ”said Isabel Díaz Ayuso after the weekly meeting of her Governing Council. "In front of the 13 taxes of Catalonia, or the 5 of Extremadura, we are going to abolish three of them," he exemplified. “We want to continue lowering taxes to lead economic growth and employment in Spain, with less taxes and less bureaucracy. This measure will be joined by the imminent reduction of personal income tax, and the open line against hyperegulation ”, he recalled.
It was an attempt to mark the beginning of the political course after the return of the holidays.
The big tax issues, however, remain pending.
The Government has yet to bring to the Assembly its proposal to reduce all sections of personal income tax by 5% (which will especially benefit the highest incomes).
Also, its Budget project for 2022, whose approval depends on Vox: the Government of the Community of Madrid, the economic locomotive of Spain, has not approved new accounts since the Executive of Ángel Garrido carried out those of 2019.
Subscribe here
to our daily newsletter about Madrid.
