Catalonia, the Valencian Community, Aragon, Asturias and Extremadura are at the bottom
The Madrid’s community For the third consecutive year, it is again the Spanish region with the lowest taxesas reflected in the latest Autonomous Fiscal Competitiveness Index (IACF) prepared by the Foundation for the Advancement of Freedom, and whose main conclusions were presented this Tuesday.
As explained by the Community of Madrid in a statement, based on this study, which analyzes the fiscal policy of the regions through more than 60 variables linked to the personal income tax, Patrimony, Inheritance and Donations, Patrimonial Transfers and Documented Legal Acts and own autonomous taxes, Madrid is, in addition, the autonomy that has improved the most since 2017, the year in which this ranking began to be drawn up, going from occupying the third position in that time to lead.
The Minister of Economy, Finance and Employment, Javier Fernández-Lasquetty, has highlighted the importance of this document in order “to improve the tax systems of the administrations, make them more respectful of the property of citizens and more competitive and attractive for companies and taxpayers”, and has shown his satisfaction that Madrid has been “at the forefront for three years”.
For the IACF, the most competitive regions after the Community have been Basque Country, Navarre and Canary Islands. On the contrary, Catalonia, the Valencian Community, Aragon, Asturias and Extremadura have been the ones that are at the bottom of this classification.
According to Fernández-Lasquetty, this is the result “of the almost two decades in which taxes have not been raised in Madrid and all have been lowered, returning a greater proportion of their resources to taxpayers”.
“We are the first economy in Spain since 2018, contributing 19.3% of the national GDP, which has allowed savings per taxpayer of 17,620 euros and, at the same time, to have public services of the highest quality”, he defended the counselor.
Greater wealth and collection, in addition to increased employment
Fernández-Lasquetty has stated that the successive reductions in taxes have benefited, above all, “to low incomes”have boosted the economy, generated more wealth and employment and, therefore, “the collection has increased”.
In line, he added that this has even allowed the Community of Madrid to be the region that contributes the most to solidarity with the rest in contributing to the financing of its fundamental public services.
For the counselor, the policies of Madrid have caused a “contagion in other autonomous communities, which have joined the tax cuts regardless of the political party that governs them”.
Thus, he highlighted the “elimination of the Wealth Tax in Andalusia, the rebate in Galicia and the announcement by Murcia, Castilla y León, the Valencian Community and the Basque Country to also reduce personal income tax”.