The Constitutional Court (TC) has overturned the reduction of personal income tax to the lowest incomes that the Catalan Government included last year through the budget support law and that the Spanish Executive appealed for invasion of powers.
According to the sentence, which is advanced this Sunday by the digital ElNacional.cat, the TC has decided to estimate the appeal presented by the Government, which considered that the Generalitat had exceeded the autonomic powers, and to declare unconstitutional this tax reduction that benefited incomes equal to or less than 12,450 euros.
However, the ruling will not have retroactive effects among the 200,000 taxpayers who have benefited from the reduction in 2020, although they will not be able to apply it in the next year.
This tax reduction was included in article 88 of the law on fiscal, financial and administrative measures, ratified in the Parliament in April 2020 together with the Generalitat’s budgets. These budgets were approved by the Government with the support of the Comuns in the Parliament.
The measure lowered the tax rate for taxpayers with lower incomes by raising the exempt minimum from 5,500 to 6,015 euros.