Valencia cuts income tax for those earning less than 60,000 euros

Income tax - Image Mozakim / Shutterstock.com

Valencia cuts income tax for those earning less than 60,000 euros according to an announcement by Valencia Generalitat President Ximo Puig.

Making the announcement on Tuesday, September 27 said that he wanted to introduce progressive tax reform that contrasts with those he described as elitist.

In a veiled reference to the tax cuts made in Madrid and in the UK, Puig said taxes must “benefit families with less income” adding that they should be used to “improve the redistribution of wealth and progressivity.”

He continued by saying that the reform is designed to: “Reduce the impact of inflation only on the middle and working classes.”

The reductions which will involve three different measures: a new personal income tax rate, an increase in tax-exempt minimums and an increase in deductions will benefit more than 97 per cent of the autonomous region’s people.

According to Puig, the average taxpayer will save around €111 at a cost of €150 million to the regional government. He added that there will be no change to the taxes for those earning above €60,000.

Puig continued saying: “We, therefore, follow the recommendations of international organisations such as the International Monetary Fund or the European Commission itself, who have demanded an exercise of responsibility from governments.

They have rejected massive tax cuts and the betting on selective cuts focused on groups that are most affected by the rise in interest rates or the increase in the cost of living due to inflation.” 

The reduction in income tax is the maximum allowed by law and is considerably higher than the 4.1 per cent announced by Madrid and 4.3 per cent in Andalusia.

Puig added that the taxes: “Will allow all citizens to have more resources to face rising prices to guarantee their subsistence, allowing a greater part of their resources not to be taxed; and, on the other hand, that there are 33,000 more Valencians who will have a zero quota. In other words, they will pay zero euros for personal income tax.”

The Valencia income tax cuts will be widely welcomed for both its help for those struggling to make ends meet, but also for the likelihood that these savings will be spent in local economies.


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Written by

Peter McLaren-Kennedy

Originally from South Africa, Peter is based on the Costa Blanca and is a web reporter for the Euro Weekly News covering international and Spanish national news. Got a news story you want to share? Then get in touch at [email protected]

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