The president of the Popular Party of the Valencian Community, Carlos Mazón, presented today the update of the PPCV tax reform that advanced a few months ago. He assures that it is "a real reform, which will mean savings of 1,750 million euros and with which incomes of less than 35,000 euros will be the ones that pay the least taxes in all of Spain."
Mazón has presented the tax reform accompanied by members of his economic team. "We have been working on the measures for a long time, seriously, coherently, thinking about people", he declared. "They are measures that can be applied now and that adjust to the reality of the Valencian Community, adapting to the needs of the pocket of citizens and the maintenance of public services. If the citizens give us their confidence on May 28, this reform will be applied immediately, with effect from January 1 of this year ”, he promised.
Mazón has pointed out that “fiscal developments, the increase in the cost of living, the shopping basket and the increasingly suffocating situation of families require a permanent update of fiscal conditions. For this reason, the government of the change of the PP will maintain a permanent tax review to try to adapt taxation to the reality of life, to the needs of citizens.
The president of the popular groups assures that “average salaries are 9% lower than the average for Spain, per capita income is 12.6% lower on average and we are last together with Catalonia in the fiscal competitiveness ranking. Citizens are going to save 1,750 million euros with this reform, 220 million more compared to the latest PPCV proposal”.
The president of the PPCV affirms that, with his reform, “80% of the taxpayers of the Valencian Community will have the lowest taxes in all of Spain. With this proposal, personal income tax is lowered for all taxpayers, especially the lowest and middle income. He says that the new rate "represents an average drop of 10% on the last rate of the Consell de Puig, being able to reach 40% with the new deductions."
The reform sets the minimum rate at 8.75%, being the lowest minimum rate after Madrid (8.50%). “By having increased the personal and family minimum up to 10% more than the state rate, we managed to be the place in Spain where low and medium incomes pay the least up to €35,000. This means placing the Valencian Community at the forefront of fiscal competitiveness and returning to Valencians the effort made in recent years, in which they have borne the highest taxes in all of Spain (along with Catalonia) with the government of Ximo Puig ”.
Mazón explained that the PPCV “will review and update the existing deductions, some of which only affect a few taxpayers, implementing a more simplified system that reaches more people, around almost two million Valencians. It's about lowering all taxes for everyone."
The plan also provides deductions related to health: up to 300 euros for 30% of the expenses generated by members of the family unit who need help for mental health pathologies; up to 200 for 30% of the expenses generated by people with highly complex chronic diseases or those called rare or minority diseases -it increases up to 300 euros if they are a large family-; and deductions of up to 200 euros for 30% of the expenses generated in cases of acquired brain damage or Alzheimer's -which will increase up to 300 if it is a large family-.
This section also includes deductions of up to 300 euros for 30% of the expenses generated by members of the family unit linked to oral health and up to 200 euros for 30% of the expenses generated by members of the unit related to visual health, such as contact lenses or prescription glasses.
Finally, the updated tax reform of the PPCV includes a deduction of up to 300 euros for 30% of the expenses generated by the members of the family unit associated with sports and healthy practices, including federation expenses.
Mazón has summarized that “it is a tax reform that will mean lowering the tax burden in the regional section by 13.21% and will cause an estimated growth of 1.5% of GDP. The tax relief will increase average household consumption by 1.95%. It will reduce the deficit by 0.5% and we anticipate a drop in unemployment in the Community of two points, from 13% to 11% thanks to the effects it will have on the economy and employment. We want to maintain the level of consumption. It is a question of entering more via activity, not via taxes”.
