The PP government team in the Valencia City Council approved this Friday at the Government Board a broad tax reduction that it described as “the largest in the history of Valencia.” According to the PP’s calculations, it will mean an average reduction of 100 euros for each resident of the cap i casal and a global saving that would be around 60 or 70 million euros. Despite this, the local Executive points out that in the next municipal budget there will be no investment cuts, although less will be received via taxes.
The proposal, which must have the support of Vox, since the PP governs in a minority, proposes reductions in the IBI, the “capital gains” tax, the so-called circulation tax, as well as the reduction of the payment of the sewage rate.
Regarding the far-right vote, the Councilor for the Treasury, María José Ferrer San Segundo, has admitted that she has not been assured of Vox’s support for her measures. In fact, as soon as the PP leader appeared, the Vox spokesperson in the council indicated that “given the lack of information and, above all, of Vox’s participation in the preparation of these tax ordinances” the opinion of his party “cannot be be favorable.” In case anyone had doubts, in a voice clip sent to the media he stated: “If they do not want our participation in the preparation of the ordinances and in the governability of the Valencia City Council, they will not count on our votes either.”
However, the head of the Treasury has indicated that, even if there was no agreement next Wednesday in the Finance Committee regarding the measures, this “would not prevent it from being discussed in plenary session.” Therefore, she understands that there is until the 24th to reach an agreement, not only with Vox. Thus, she trusts that left-wing groups can support, if not all, then some of the ordinances.
San Segundo has insisted that if his proposals follow the line that other parties have defended (in reference to Vox), “it would be incoherent” for the municipal group led by Juanma Badenas not to support lower taxes for a matter of “political strategy.” “.
The councilor of the Treasury has explained that the Executive intends, fulfilling its electoral commitment, a 20% reduction in the Real Estate Tax. Thus, more than 400,000 Valencians would pay 70 euros less on average to own their home, while more than 33,000 merchants would benefit from an average saving of 92 euros on the IBI bill. The general tax rate would go from 0.723% to 0.578%.
The modification of the IBI also proposes that large families have a real bonus in the IBI of 60% (general category) or 90% (special category), without depending on the cadastral value of their home. As an example, the person in charge of the Treasury explained that a large family of general category with a habitual residence of 100,000 euros of cadastral value would go from paying 608.40 euros to 231.20 euros of IBI.
San Segundo has contrasted this fiscal policy of the new council with the two tax increases that, he has pointed out, the previous government team imposed.
Continuing with the Generalitat’s policy of ending the Inheritance and Donation Tax, the council wants the residents of Valencia to stop paying municipal taxes for inheriting. Along these lines, a 95% real bonus is proposed in the capital gains tax due to death between spouses, ascendants and descendants (the requirements that currently prevent benefiting from the bonus are eliminated). A modification that San Segundo has considered one of the “star” measures of this fiscal package.
At the same time, the PP is committed to promoting succession in the family business and maintaining employment with a new bonus of 95% of the capital gain for transmitting businesses between spouses, ascendants and descendants during life.
In addition, the councilor has pointed out that the council chaired by María José Catalá has opted to nullify the increases that the previous government team imposed in 2020 with the 8.5% reduction in the circulation tax and the reduction in the tax rate. sewer, of which he has not given details.
Finally, the councilor pointed out that the local government wants to facilitate the a la carte payment of taxes to “adjust it to the situation of the different families.”
