Updated on Thursday, 2 September 2021 – 02:32
The Madrid community will be the first that does not apply regional taxes to citizens
Ayuso announces that the Community of Madrid will eliminate all its own taxes
“Less taxes and less bureaucracy.” This is how the President of the Community of Madrid, Isabel Daz Ayuso, that the regional government will remove all own fees with which autonomy had until now.
According to its tax reduction plan, the regional administration will carry out Madrid Assembly a law of suppression of regional taxes that will affect the installation of recreational machines in catering establishments authorized, to Waste Deposit, -the only regional taxes that were in force-, as well as the Economic Activities, which did not apply.
This new law proposed by the Ayuso government intensifies the Madrid’s political battle for its fiscal autonomy, which collides with the tax harmonization plan for the autonomous regions of the President of the Government, Pedro Snchez.
If approved in the Assembly, this elimination of the three own taxes will make Madrid the Only region without regional taxes. At the moment, the rest of the Spanish autonomous communities maintain at least two types of own taxes. Catalonia is in the lead with 15 ratesThese include taxes on vacant homes, sugary drinks, and carbon dioxide emissions from powered vehicles.
Andalusia follows Catalonia, with eight own taxes, in addition to the six in Asturias, Galicia and Murcia, five in Aragn, Extremadura and the Canary Islands, four in La Rioja, Valencia and the Balearic Islands and two in Castilla-La Mancha and Castilla y Len, respectively. .
The collection for the tax on machines in authorized catering establishments and that of the Waste Deposit is residual:barely represents 0.02% of total tax revenue, that is, 0.7 euros per inhabitant, compared to a total collection of 3,415 euros per taxpayer. But it is one more step in Ayuso’s strategy of reducing taxation on companies and citizens of Madrid in order to increase economic activity and thereby generate new income for the Administration.
The tax on machines in establishments is levied on the assembly of recreational facilities, with or without a premium, in this type of premises. Despite its low taxation, the Ayuso administration makes a new guide to the hotelier and waives a rate that has become obsolete after the creation of the state gambling tax. Thus, in 2020, 1.2 million euros were collected for this tax, while 144.6 million were entered for the state tax on gambling.
For its part, the tax on Waste Deposit, intended to protect the environment, remain overlapped by state tax that the Government of Spain is going to launch. In 2020, the collection in the Community of Madrid for this tribute was 2.2 million.
On the other hand, the region applies a 0% surcharge About Tax Economic Activities (IAE) since 2009. This tax is levied on the exercise of business, professional or artistic activities in the national territory. Management is shared between the State and the autonomous communities.
The different tax cuts that the Community of Madrid has carried out since 2004 have meant a savings for the people of Madrid of 52,819 million euros, which means an average of 16,500 euros per taxpayer, according to information from the Community itself.
Ayuso has committed to continuing this low-tax fiscal policy by undertaking the biggest drop in the history of personal income tax, of half a point in all sections of the tax. Currently, the autonomous region of Madrid has the minimum income tax section lowest in all of Spain, 9%.
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