Monday, December 6

Ayuso approves his “historic” tax cut that will reduce Madrid’s collection by 334 million euros

It has taken more than two years for the main electoral promise with which Isabel Díaz Ayuso attended the 2019 elections for the first time to be fulfilled. But it has now come to come into force in the pre-electoral year and while the president of the Community of Madrid is immersed in an internal war with the national leadership of her party, the PP: the “historic” tax cut that will place Madrid as the region with the lowest personal income tax in the country – it was now only tied with the Canary Islands, which applies the insularity component.

Ayuso herself, who a week ago decided to absent herself from the presentation of the budgets for 2022, wanted this Wednesday to personally announce the law that will make this tax reduction possible that will reduce the collection of the Community of Madrid by 334 million euros, according to indicated the Minister of Economy and Finance, Javier Fernández-Lasquetty.

“It is good news for taxpayers, for the middle classes,” the regional president assured at the start of the press conference after the Governing Council that approved the bill. “We have made one of the commitments of this government come true, which is the historic tax cut,” he has continued to present the legislative project that will now have to be ratified in the Madrid Assembly. The measure, once approved in the regional parliament, predictably with the support of Vox, will take effect in 2022, the pre-election year.

The IRPF reduction carried out so far in the region, which will reduce 0.5 points in each of the autonomous sections.

On the other hand, the Madrid president has revealed that the Governing Council has given the green light to the elimination of all the taxes of the Community of Madrid. This is the tax on the installation of recreational machines in authorized hospitality establishments, the Waste Deposit and the surcharge on the Economic Activities (IAE), which is currently 0%.

According to the data provided by the regional government, in the Community of Madrid, the collection of these taxes barely represents 0.02% of the total, and in 2020, the tax was 3.4 million euros. However, they consider that “its elimination will help economic recovery, removing obstacles to the development of the activity, which will favor the creation of companies and the expansion of existing ones.”

“We want to send a very clear message to investors, businessmen, the middle classes and that is that in Madrid we are not going to invent new taxes and we are going to continue, therefore, reducing them and also leaving all our own taxes to zero” , has pointed out Ayuso.

The Madrid president has once again attacked the Executive of Pedro Sánchez: “While right now the Government of Spain is deciding whether or not to repeal the labor reform and is playing with the employment of all Spaniards to satisfy some partners or others “, his Government continues to be” the counterweight of freedom and prosperity that the Spanish need. ”