The president of the Community of Madrid announced on Tuesday the presentation of the draft law that will shield the fiscal autonomy of this region, since, at the end of the year, the personal income tax was already reduced by 0.5 points in its regional section and that there were .
In this way, the Governing Council of the Community of Madrid has approved this Wednesday the draft Law for the Defense of Financial Autonomy to “shield its economic and fiscal policy from that prepared by the Government of Spain and which will mean a tax increase generalized to citizens.
The regional government has indicated in a statement that the objective is to protect the rights recognized in this matter to the region through the Spanish Constitution -article 156- and its Statute of Autonomy -article 51-.
In this way, the Community of Madrid will be able to “safeguard the exercise of its financial autonomy, both from the aspect of expenses and income, imposing on the regional public powers their defense of any attempt to undermine it”.
In this sense, according to the statement, the Madrid Assembly and the higher bodies of the Autonomous Government and Administration are obliged to react with all the mechanisms at their disposal in national, European or international legislation, before any law, normative or act of the State “with the force of law that infringes the joint fiscal responsibility and financial autonomy of the region”.
The norm will regulate the autonomy of income, materialized in the capacity of the Madrid Executive to regulate and execute its own taxes, the surcharges on state taxes and the taxes ceded by the State. The autonomy of spending is also regulated in accordance with the principles of efficiency, effectiveness and economy, as well as sustainability and budgetary stability.
Likewise, it ensures that transparency is guaranteed in the information on the financial activity of the Community of Madrid and the operation and control of public tax action. In this way, Madrid citizens will be informed, among other aspects, of the final destination of the contribution they make to public revenue, or of their tax situation in relation to other autonomous communities or, where appropriate, foreign regions.
Prevent tax increases
With the Law for the Defense of Financial and Fiscal Autonomy, which is now beginning its legislative process for its approval in the regional Assembly, the Community of Madrid has a new legal instrument that will allow it to “safeguard its powers in tax matters and make in the face of a so-called fiscal harmonization. This initiative of the National Government only seeks to raise taxes for the people of Madrid and reduce the freedom of the region to manage its economy”.
Likewise, it is highlighted that “the free exercise of this financial autonomy, thanks to 17 years of tax cuts by successive regional governments, has allowed savings of close to 53,000 million euros, that is, 16,500 euros per taxpayer”.
In addition, the statement added, “low taxes, together with an efficient spending policy and compliance with budgetary stability, have made Madrid the largest economy in Spain, being the region that contributes the most to national GDP, with 19 .3% in 2019, according to the regional accounting of the INE. Madrid is also, by far, the most attractive community for foreign investment, attracting 73.3% of the state total in the third quarter of 2021”.
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