The Plenary of the Madrid Assembly has approved this Thursday the law presented by the Government of Isabel Díaz Ayuso to eliminate the taxes of the Community of Madrid as of January 1, 2022 thanks to the votes of PP and Vox. With this abolition of taxes, the regional Executive will stop entering 3.4 million euros in the regional coffers, which are added to the other 334 million that the autonomous administration will stop collecting due to another tax reduction law approved last Thursday: the Half a point reduction in personal income tax that benefits, above all, the highest incomes.
In the parliamentary debate, the Minister of Finance, Javier Fernández-Lasquetty, has defined as a “very important step” that these regulations be approved to make a society “more competitive in terms of tax cuts.” “We do it by principle. We are the region that creates the most jobs and the one that attracts the most foreign investment,” he argued. Lasquetty has insisted that it is a law that benefits all Madrilenians but the reality is that taxes affect the exercise of business activities.
One of them is the tax on machines in authorized catering establishments, which is levied on the installation of recreational machines, with or without a premium, in these types of establishments. Another is the tax on the Deposit of Residues, destined to the protection of the environment. The third is one that is already fully subsidized, the surcharge on the Economic Activities Tax (IAE), which is 0% since 2009.
The deputy of United We Can Sol Sánchez has regretted that this measure will favor “recreational machines” and the industry of “promoting gambling”. Sánchez has also regretted that it has been processed by single reading and that he cannot have proposals for improvement with the amendments of the groups.
Vox, which has supported the law, has said that this reduction is “small but that it goes one step further”, and that they consider it “beneficial” for the region.
In his turn, the PSOE deputy Fernando Fernández has regretted that the PP is bringing this “fiscal populism” measure for Christmas. Fernández recalled that “a drop in revenue” implies “less service for those who need it most.”
The deputy of Más Madrid Emilio Gutiérrez recalled that while taxes are being lowered, the Community of Madrid is asking the Madrid City Council to forgive the IBI of hospitals and judicial headquarters, worth 17.2 million euros, to pay, among others health issues, as advanced elDiario.es. “The only thing that they bet is to give a project of future to the Madrilenians leaving a few tens of euros in the pockets and many millions in the pockets of the millionaires”, has said Guitiérrez.
The Ministry of the Presidency and Justice of the Community of Madrid asked the Madrid City Council on December 18 to forgive the Real Estate Tax (IBI) of publicly owned health centers and also give it a discount of 95% of this same tax of the newly built judicial headquarters now that the Ciudad de la Justicia project is going to be recovered. In this way, alleges the Ayuso Government, it will be possible to contribute “to the improvement of Madrid’s public service such as health.”
Ask for help from the central government for public transport
This is not the only thing. The Community of Madrid has asked the central government this Thursday for aid for public transport in view of the historical increases in the price of electricity, which in Metro has doubled its cost, as detailed by the Minister of Transport and Infrastructure, David Pérez in the Plenary of the assembly.
Pérez has warned that “this increase is especially hard for the Madrid underground because it uses a lot of electricity to operate”, despite the fact that “it pollutes very little.” The counselor has detailed that the consumption of Metro de Madrid, which was previously 120,000 euros per day and now reaches 260,000, which has meant an extra cost of 30 million euros this year.
“There is no company that can assume such a large budgetary deviation. That is why we want to ask the national government for support in the form of aid for the maintenance of public transport, not only for Metro de Madrid, but for all suburban services in Spain. In order for us to continue providing these services to citizens with quality, we need your help, “concluded Pérez.