• Negotiations.The budgets of the Generalitat enter into the negotiation of the investiture of Sánchez
  • Tribute: The Government will continue to apply the rate to sugary drinks despite being canceled by the TSJC

After successive extensions since 2017, the Generalitat of Catalonia is close to having new budgets for the next year. This was explained this morning by the Vice President of the Government and Minister of Economy, Pere Aragonès , who has broken the pact that the Catalan Executive has reached with the Catalan parliamentary group in Comú Podem in terms of income and taxation, which includes the creation of new taxes and the modification of some existing ones in order to raise the collection of the autonomous coffers.

In the words of the leader of Republican Esquerra, "for the first time there is an agreement that houses a whole ideological plurality." Aragonès, however, has avoided talking about whether this understanding is linked to other types of pending agreements, such as the investiture of Pedro Sánchez or the budgets of the Barcelona City Council , which depend on the will of agreement between Mayor Ada Colau and the councilor Republican Ernest Maragall .

This reform, which according to the Catalan vice president has as pillars "progressivity and fair and green taxation", is the first step for the approval of some accounts that still have pending measures regarding the expenses section, so that the negotiation between Junts per Catalunya and Esquerra with the commons has not concluded.

New tranches in the personal income tax

One of the most important changes in Catalan budgets for next year will affect the personal income tax. In addition to increasing the taxpayer's exempt minimum by 10% for the lowest income (up to 12,450 euros of liquidable base), the high tranches will be modified creating a new scale from 90,000 euros , which will be taxed by 23.5% , and will be will create a new rate of 24.5% for those who enter between 120,000 and 175,000 euros . From this amount the current 25.50% is maintained. "Progressivity and redistribution: it is an effort of the 50,000 people who enter the most to benefit the 200,000 who earn less," Aragones summarized in his presentation to the media.

In addition to the changes in the income tax, the Catalan Government's agreement with the commons will also modify the inheritance tax so that those with a higher patrimony carry a greater burden, which would mean an additional income of 190 million . Likewise, the controversial rate on packaged sugary drinks will be updated to modify the habits of consumers and producers "towards healthier patterns." On the other hand, there will be changes in taxes on Transmissions, empty homes and stays in tourist establishments and new rates will be created on facilities that affect the environment, port emissions from large ships and CO2 emissions from mechanical traction vehicles.

Aragonès, who has assured that the fiscal deficit of Catalonia with the State remains, stressed that "for the first time in recent decades a tax reduction for the working class is approved," an assessment similar to that made by the leader of Catalunya in Comú Podem Jéssica Albiach, for whom it is "the most important reform in the last 20 years", since it would increase the resources of the regional administration by 550 million euros per year.

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  • Catalonia
  • Personal income tax
  • Jessica Albiach
  • Junts per Catalunya
  • Pedro Sanchez
  • Taxes

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