The priority partner of the Govern to support the budgets demands to maintain the Patrimony tax

The echo of the debate on taxation in Spain, after Andalusia's announcement of joining Madrid in abolishing the Wealth Tax, resonates in Catalonia.

Thomas Osborne
Thomas Osborne
20 September 2022 Tuesday 08:31
14 Reads
The priority partner of the Govern to support the budgets demands to maintain the Patrimony tax

The echo of the debate on taxation in Spain, after Andalusia's announcement of joining Madrid in abolishing the Wealth Tax, resonates in Catalonia. Although the President of the Government, Pere Aragonès, has declared on occasion that he has no intention of touching taxation in the next budgets, the potential partners of the Catalan Executive to support the accounts do not trust, and will try to obtain a clear commitment from the Government in the next general policy debate.

Comú Podem will bring to this debate a resolution proposal in which the Catalan Executive will be urged to maintain the tax in Catalonia, a tax that collects 547 million euros a year and that falls on 1% of the Catalan population, according to the spokesman for the commons, David Cid.

Cid defended this Tuesday the need to maintain this tax against the desire of a part of the Government, Junts, which is committed to opening the debate on the elimination of the tax in view of the fiscal dumping that is taking place in our country. But if the Government wants to approve the accounts with the commons, the maintenance of this tax will be a red line. "It is necessary that the Government commits itself not to use the Ayuso formula of tax gifts to the rich. If not, they should not count on us for the budgets," the spokesman conditioned.

Jésica Albiach's formation has already held several meetings with the Catalan Executive to explore a budget agreement. In fact, they are the party that is best positioned to support the accounts for the third time, although they admit that they have not yet been able to negotiate in depth nor have they seen a single number.

But the fact that the Minister of Economy is a postconvergent, Jaume Giró, can complicate things, especially after the recent announcement of Andalusia, which is clearly intended to attract high-income Catalans. Not surprisingly, Junts' political paper approved in July points out the need to open a debate on taxation in Catalonia and mentions Inheritance, Donation and Heritage taxes.

“We want the Parliament to express itself”, Cid pointed out about the resolution proposal that they will present and that could show the differences between the partners of the Catalan Executive in this regard.

“It is a tax that only 1% of the population pays, with an average wealth of 2.7 million euros and that collects 547 million that go directly to the coffers of the Generalitat”, defended the spokesman. In addition, the tax is emblematic for the commons because it is an example of how "fair taxation" should be, based on those who have the most paying more, and it serves to have "quality social services". The Government must choose, but "Catalonia cannot be the Andorra of the South", Cid has summoned.

The commons do not see a problem, on the other hand, in the Inheritance tax, a tax whose reform was already negotiated and agreed a couple of years ago with the Government and which meant an increase in the collection of 200 million euros. With this reform so recent, it would make little sense to take "a step back" now, Cid confided.

The negotiation on the budgets with the Government is not going at the pace that those of Albiach would like. "Beyond the bilateral contacts" that they have had "we have not seen any number", they complain, and blame it on the crisis between the coalition partners: "They do not agree on the priorities of the budget", the Government “lives from paralysis” and this “affects everything”, including new accounts. "It affects the negotiation because the government's priority is to keep the chairs," criticizes Cid.