The Minister of Finance,

María Jesús Montero

, has hardened her speech against what she calls "fiscal dumping" in the Community of Madrid.

In an intervention in the Congress of Deputies, Montero has accused the regional government of

Isabel Díaz Ayuso

of unleashing "capital flight" in other autonomous communities and the Popular Party of supporting this practice.

"You are making it possible to defend the fiscal position of Madrid and force Andalusia, for example, to choose a lower quality of public services [by competing in lower taxes] to avoid capital flight"

The socialist minister has responded like this in an interpellation of the spokesman of the Popular Party,

Mario Garcés, who has asked the Government to respect fiscal autonomy.

"Fiscal autonomy is to modulate, it cannot be to eliminate," Montero replied.

The former Andalusian Minister of Finance, has assured that the national PP previously defended what he calls fiscal "harmonization", but "they have changed their position because they are afraid of the PP in Madrid."

Montero has reaffirmed his intention to "fight that there are autonomous communities like Andalusia that, in order to collect, like Madrid, is forced to increase the tax burden on citizens. It is not fair that they are forced to raise rates, because their income level per inhabitant it is inferior to others that by making use of fiscal dumping are causing capital transfers ".

According to Montero this is the case of several governed by the PP: "I am speaking to you about Andalusia, Castilla y León, Murcia ...".

Madrid does not apply the Wealth Tax and sets the lowest tax burden in the country in Personal Income Tax and Inheritance and Donations Tax.

Garcés, for his part, who was a councilor of the Treasury of Aragón, has denied the "dumping" from Madrid.

"There is no 'dumping', each community has the capacity to modulate its taxes."

And he stressed that of the 84,000 million euros in general taxes collected in Madrid, the Community receives 19,000 million, 22%, and of the transferred 25% goes to other communities. "Garcés has urged Montero to reform the model of financing and this

has ensured that his predecessor, Cristóbal Montoro, did not leave him in 2018 "any political document despite the fact that the system had expired

.

"

This has been maintained since then, but the minister has assured that he is going to promote a new system, because the current one "has been unfair with some territories." But no timetable has been specified.

According to the criteria of The Trust Project

Know more

  • PP

  • Madrid

  • Andalusia

  • Maria Jesus Montero

  • Aragon

  • Murcia

  • Castile and Leon

  • Isabel Diaz Ayuso

  • Christopher Montoro

  • Congress of Deputies

  • Madrid's community

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