Tue. Aug 9th, 2022

The Lehendakari, Iñigo Urkullu, announced this Thursday a total of six measures that represent a fiscal effort of 250 million euros to minimize the effect of inflation , including deflating all sections of the personal income tax rate by 4% and adjusting of the withholding table applicable to work income from September.

Urkullu, who made the announcement at the Lehendakaritza headquarters with the general deputies the general deputies of Álava, Bizkaia and Gipuzkoa, Ramiro González, Unai Rementeria and Markel Olano, stated that they have agreed on six measures to deal with inflation within the ” effort of analysis and permanent response” of the institutions that address the current situation.

The first of them consists of deflating all the sections of the personal income tax rate by 4% , with application to this year 2022. In this way, the amounts of the reduction for joint taxation, reduction of the quota and the deductions are updated. in the same percentage of 4%. This deflation is added to the one applied at the beginning of the year of 1.5%, so the total figure will be 5.5%.

Secondly, the withholding table applicable to work income will be adjusted as of September . In this way, the rate deflation will be effective from that month. The Lehendakari stressed that “deflating means that all individuals and families will have more money in their pockets.

The third measure will involve the reduction of the quota of up to 200 euros applicable in returns with a General Tax Base of up to 35,000 euros. In this sense, returns with a General Taxable Base of up to 30,000 euros, may apply the reduction of the 200-euro quota. Between 30,000 and 35,000 euros, this amount of 200 euros will be progressively reduced.

The fourth initiative will be the exemption from public aid of 200 euros that are received on the occasion of Royal Decree-Law 11/2022, while the fifth will consist of the exemption from the presentation of installment payments for the third and fourth quarters of 2022 for autonomous people.

Finally, the sixth measure will entail the exemption from submitting the installment payment for companies with a volume of operations of less than 50 million, as long as they are not included in a tax consolidation group.

Iñigo Urkullu specified that these measures represent a fiscal effort of 250 million euros . On the one hand, 140 million benefit all income taxpayers and, on the other hand, 110 million benefit the most vulnerable.

Insufficient for PP and Cs
On the contrary, PP+Cs believe that a deflation of 4% is “insufficient”, that it ” comes late and will come to nothing ” if other measures are not adopted, if they are not accompanied by other measures, such as the elimination of public rates and prices for the productive sector or “excessive bureaucratization”. It is also based on inflation, and reports that with a rate of 10%, 4% is insufficient.

The representative of the PP has referred to the estimated cost of 250 million that will entail the six measures planned by the Basque institutions to deal with inflation, to affirm that “it is nothing compared to the remnants of the councils or the Basque Government” nor with the Euskadi Budgets.

“The budget of the Basque Government and the councils total 16,000 million, so 250 million are going to be absolutely nothing when there is an accumulated bag of more than 2,000 remnants of these four administrations that could be returned to the productive sector and used to further deflate personal income tax”, he indicated.

338 million in aid to SMEs and the self-employed
“Since the start of the pandemic at the beginning of 2020 until June of this year, all public institutions have made an extraordinary budgetary effort. In the case of the Government, this effort amounts to 1,569 million euros,” he explained. the lehendakari.

Specifically, an item dedicated to small and medium-sized enterprises (SMEs) and self-employed workers, collects 338 million in direct aid and also for the culture, tourism, commerce and hospitality sectors. Social assistance, explains Urkullu, and employment have had an additional 90 million, and financing for the transport sector 23 million. The other 67 million have been allocated to other public services.

Leave a Reply

Your email address will not be published.