The seven Autonomous Communities that have announced reductions in regional personal income tax cover more than 29 million citizens

Andalucía, Madrid, C. Valenciana, Galicia, Euskadi, Murcia and CyL have advanced as they will reduce this tax to a greater or lesser extent

MADRID, 27 Sep. (EUROPA PRESS) -

Andalusia, Madrid, the Valencian Community, Galicia, the Basque Country, Murcia and Castilla y León are the seven autonomous communities that have announced new regional rates for Personal Income Tax (IRPF) for certain sections. These seven regions add up to a total of more than 29.1 million inhabitants, who could be affected by these tax cuts.

The last to announce a new tax reduction in personal income tax has been the president of the Xunta de Galicia, Alfonso Rueda, who has advanced that his Executive will continue with his "own path" in fiscal policy. In this context, he has announced that personal income tax, in addition to lowering from 9.4 to 9% in the regional section, will suffer a new reduction in income of up to 35,000 euros with effect from January 1, 2022.

This will serve, according to estimates, that each Galician will save an average of 450 euros, which translates into a total of 46 million euros. All this is added to other reductions that were already committed to personal income tax: families with two children under 25 years of age will be equal to the numerous ones, who also have "other bonuses"; and the first installment of this tax will drop from 9.4% to 9%, as he already promised in May during his investiture speech.

Despite the criticism that these tax reductions have received from some socialist leaders, the president of the Valencian Community, Ximo Puig, advanced some of his Valencian tax reform measures on Tuesday.

Specifically, the first measure is to increase by 10% the amount exempt from taxation for all Valencians, "the maximum allowed by the rule"; the second is a new autonomous personal income tax rate for 2022, with new sections adapted to inflation, and the third is the 10% increase in "all tax deductions and rebates".

Puig has emphasized that these measures are aimed at taxpayers who earn less than 60,000 euros; that is, 1.34 million Valencians and 97.4% of the total. They will be applicable in the 2022 income tax return.

The deflation of personal income tax for incomes below 40,000 euros has been one of the star proposals that the 'popular' leader, Alberto Núñez Feijóo, has been calling for since April. Precisely, the president of the PP continues to insist on Sánchez to carry out this measure.

Thus, several autonomies governed by the 'popular', such as Galicia, Madrid, Andalusia or Murcia, have already announced their intention to deflate personal income tax to a greater or lesser extent, while in the case of the Valencian Community it has done so for taxpayers with income less than 60,000 euros.

Also the Basque Country, in which the PNV shares a Government with the PSOE of the Basque Country, has announced that it will return, as it did in July, to deflate all the sections of the IRPF rate. This, added to the one made at the beginning of the year, of 1.5%, will mean a total deflation of 5.5% for 2023.

In Andalusia, the deflation of the first three sections of the regional IRPF rate by 4.3% will affect all taxpayers, although it will especially benefit the 82% who pay taxes within said first three sections. The measure enters into force retroactively to January 1, 2022, with which it will be reflected in the personal income tax return filed next year.

The Board justifies the deflation to prevent a salary increase, which in no case will be able to compensate for the sharp rise in inflation, from implying greater taxation for the taxpayer and to keep out of taxation the part of the income destined to cover basic needs .

The personal and family minimums for which personal income tax is not taxed are also increased in the same proportion (4.3%), considering that this part of the income, destined to meet the basic needs of taxpayers and their families, is increasing as a result of inflation.

Meanwhile, the Community of Madrid has announced that it will deflate the sections of the regional IRPF rate by 4.1%, with the aim of having effects in the Income Statement of Madrid residents.

The objective of this advance, which was scheduled to come into force in 2023, is that families can have "greater resources with which to face high inflation and the rise in energy, fuel or food prices."

Once it is approved this year, it will be added to the half-point reduction of all the regional sections of the tax validated by the Community of Madrid, which came into force on January 1, and which will mean an estimated saving of more than €300 million.

In the case of Murcia, the Executive led by Fernando López Miras has already approved by decree law the reduction of the first four autonomic sections of personal income tax by 4.1%, a measure with which it plans to benefit 330,000 Murcians, achieving estimated total savings between 8.5 and 10 million euros.

This deflation will affect 96% of those required to submit the Income Tax return, according to the Government of the Region of Murcia.

For its part, the Junta de Castilla y León has approved the draft law on tax reductions in the Community, which will allow the lowering of the first tranche of personal income tax by 5.3 percent.

Specifically, the project will allow the reduction of Personal Income Tax (IRPF) for all Castilian and Leonese taxpayers, lowering the regional rate in the lowest section already in 2022. In this way, the first section of the regional scale applicable to the general taxable base of personal income tax is reduced by half a point, going from 9.5 percent to 9 percent, which represents a reduction of 5.3 percent.

Meanwhile, the president of the Government of Aragon, Javier Lambán, admitted on Tuesday the "possibility" that taxation in his autonomous community could be changed if the four parties that make up the Government agree.

Javier Lambán recalled that, in his investiture pact, the quadripartite --PSOE, PAR, CHA and Podemos-- agreed that fiscal policy would not move "neither up nor down."