The regional government adopts the PP amendments on deductions for home care and assistance to rural areas. EH Bildu and Elkarrekin Araba opposed it. Currently, tax harmonization with Bizkaia is maintained, as it is not known what will happen in Gipuzkoa.
The Álava General Assemblies will approve the 2.5% deflation in the IPRF for next year, after an agreement has been reached between the regional government (PNV and PSE-EE) and the PP.
The Finance Committee of the Provincial Chamber approved this Wednesday the opinion of the draft provincial regulation amending part of the tax rules in which this measure is included, thanks to the votes of the PNV, PSE-EE and PP, with the approval of the sole member of Vox and the opposition of EH Bildu and Elkarrekin Araba.
PNV and PSE-EE needed the support of at least one opposition group to implement this reform and negotiated with the popular parties until the last minute to reach an agreement.
In return for the PP guaranteeing this deflation, nationalists and socialists have provided support five popular amendments with budgetary measures affecting rural areas and vulnerable groups.
Finally, the pact leaves aside the PP’s request that aimed to “increase the PNV and PSOE proposal by another 0.5%”, in order to deflate 3% in Álava next year and “get closer to the real price increase”, which means that in the absence of knowing what will happen in Gipuzkoa, fiscal harmonization with Bizkaia will be maintained for the time being, by agreeing to a 2.5% deflation of personal income tax, as agreed in the last Basque Council of Finance.
The changes included in the PP project increase the deduction for people with a recognized dependency or disability to a total of 3%, increase the amounts for recipients of the Personal Assistant Economic Benefit (PEAP) “to help families with elderly or dependent persons dependents”, up to 4.5%, and increase the deduction by 20% for ascendant parents living at the same address, with the aim of “helping families with elderly people in their care”.
As for the rural area, the opinion agrees that new entrepreneurs can deduct a total of up to 3% for those starting their economic activity, and doubles the reduction in the quota for people from Alava living in towns with fewer than 500 inhabitants , to “alleviate the consequences of depopulation in the rural area of Alava”, so the amounts of tax deductions go from 107 to 200 euros.
The agreement endorsed on Wednesday by PNV, PSE-EE and PP will be ratified next Friday at the plenary meeting of the General Assemblies of Álava.
Source: EITB
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