"Less taxes and less bureaucracy."
This is how the
president of the Community of Madrid, Isabel Díaz Ayuso
,
announced yesterday
that the regional government is going to
eliminate all the own rates
that the autonomy had until now.
According to its tax reduction plan, the regional administration will bring to the
Madrid Assembly
a law to abolish regional taxes that will affect the
installation of recreational machines in
authorized
hospitality establishments
, the
Waste Deposit
, -the only regional taxes that were in force-, as well as the
Economic Activities
tax surcharge
, which was not applied.
This new law proposed by the Ayuso government intensifies the
political battle in Madrid for its fiscal autonomy
, which clashes with the plan to harmonize taxes on the autonomies of the
Prime Minister, Pedro Sánchez
.
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 leads with 15 rates
, including taxes on empty homes, sugary drinks and carbon dioxide emissions from mechanical traction vehicles.
Andalusia follows Catalonia, with eight own taxes, in addition to the six in Asturias, Galicia and Murcia, five in Aragon, Extremadura and the Canary Islands, four in La Rioja, Valencia and the Balearic Islands and two in Castilla-La Mancha and Castilla y León, respectively .
The collection for the tax on machines in authorized catering establishments and that of the Waste Deposit is residual:
It barely accounts for 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
nod to hospitality
and renounces a rate that has become obsolete after the creation of the
state tax on gambling
. 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
Waste Deposit
Tax
, intended to protect the environment, will be
overlapped by the state tax
that the Government of Spain is going to implement.
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
on the
Economic Activities
Tax
(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 various tax cuts that the Community of Madrid has carried out since 2004 have meant
savings for Madrid residents of 52,819 million euros
, which is an average of 16,500 euros per taxpayer, according to information from the Community itself.
Ayuso has promised to give continuity to this low-tax fiscal policy, undertaking the
largest reduction in personal income tax in the history of personal income tax
, of half a point in all sections of the tax.
Currently, Madrid's autonomy has the lowest income tax bracket
in all of Spain
, 9%.
According to the criteria of The Trust Project
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Madrid's community
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Personal income tax
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Isabel Diaz Ayuso
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