The proposal, led by PNV and PSE-EE, aims to ease the tax burden on taxpayers and businesses in Euskadi. However, its approval will depend on opposition support in Gipuzkoa and Álava, where provincial governments do not have an absolute majority.
The estates of Bizkaia, Gipuzkoa and Álava are working on an ambitious tax reform that, if approved, will mean a drop in turnover of 223 million euros by 2026.
This project aims to benefit both individual taxpayers and businesses, through a series of measures that expand deductions and reduce the tax burden.
According to the territorial distribution, Bizkaia’s collection will be reduced by 94 million euros, Gipuzkoa by 88 million and Álava by about 41 million euros. Among the main measures considered are the increase in the minimum exempted personal income tax, from 14,000 to 19,000 euros per year, and the extension of the 200 euro deduction for incomes of less than 35,000 euros. In addition, specific incentives have been included for female entrepreneurs and new deductions to promote energy efficiency and sustainable mobility, such as bonuses for the purchase of electric vehicles or the installation of charging points.
The proposal also concerns supplementary social security, adjusting the contribution limits for the EPSV, with a particular focus on the self-employed, who can deduct up to 4,000 euros. These measures, in line with the objectives of sustainability and equality, are intended to encourage economic activity and support families.
In Bizkaia, where the PNV and the PSE-EE have a sufficient majority, a quick adoption of the reform is expected. However, in Gipuzkoa and Álava the situation is more complex. In these areas, provincial governments will need the support of at least one opposition party to move the project forward, heralding a period of important negotiations to secure its approval.
The coming weeks will be decisive for the future of Basque fiscal policy. If the necessary agreements are reached, the measures could enter into force in 2025, with significant impacts on the economy and citizens’ lives from financial year 2026.
Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
