Friday, September 17

Ayuso announces that it abolishes minor taxes in the Community that collected 3.4 million a year

The president of the Community of Madrid, Isabel Díaz Ayuso, announced this Wednesday that her Government intends to eliminate all its own taxes that the region had until now, lower taxes for which the regional Executive collects 3.4 million euros year. It is, specifically, the abolition of the tax on the installation of recreational machines in authorized hospitality establishments and the tax on Waste Deposit.

This was announced by the autonomous leader herself at the press conference after the Governing Council, where it was agreed to start the processing of the Law to abolish these taxes, which will have to be approved later in the Madrid Assembly. “Madrid will become the only autonomous community with a common system without its own taxes,” Ayuso stressed.

For the PSOE spokeswoman in the Madrid Assembly, Hana Jalloul, the announcement of the Madrid president is “pure smoke” and has called it “populism”. “Madrid is the only Community that maintains the tax on catering machines; the tax on waste is overlapped by one at the state level and the IAE has no surcharge since 2009”, criticized Jalloul.

According to the data provided by the regional Executive, in the Community of Madrid, the collection of these taxes barely represents 0.02% of the total, 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 3.4 million euros.

The tax on machines in authorized catering establishments is levied on the installation of recreational machines, with or without a premium, in these types of establishments. It is a tax that for the Community Government has become obsolete after the creation of the state tax on gambling.

Currently, the Community of Madrid is the only region that has a tax of these characteristics, with its residual collection since the bulk of the tax remains in the tax rate on gambling. Thus, in 2020, 1.2 million euros were paid for the own tax while the tax rate collected 144.6 million.

For its part, the waste deposit tax, aimed at protecting the environment, will be overlapped by the state tax that the Government of Spain is going to implement. In 2020, the collection in the Community of Madrid for the own tribute was 2.2 million.

On the other hand, the Community of Madrid has a 0% surcharge on the Economic Activities Tax (IAE) since 2009. This tax is levied on the exercise of business, professional or artistic activities in the national territory. Management is shared between the State and the communities.





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