María Guardiola announced this Tuesday her first economic plan for the legislature, which includes a broad reduction in taxes and public fees in Extremadura. The decrease in personal income tax in the first two regional sections – which now stand at 8% and 10% compared to the current 12.5% - as well as the ‘zero rate’ for new self-employed workers through an aid of 960 euros per year are two of the main economic measures that the Governing Council of the Government of Extremadura approved this Tuesday. She has done so through a Decree-Law of “urgent measures” for the families and economic fabric of this region, with a retroactive effect on all of them from January 1 of this year, including the 100% bonus of Wealth Tax. In addition, the registration tax is reduced, the tax on empty homes of large tenants is eliminated or the deduction of the amounts paid for renting a primary residence is raised to 30%.
This package of measures corresponds to “a first tax reduction”, Guardiola has specified, in order to address the “impact” that “economic instability” – due among other things to “high inflation” – is causing on households. Extremadurans and thus be able to increase “the disposable income” of the citizens. With these measures – Guardiola has reiterated – the aim has been to take “a crucial step” to introduce “useful” measures that reach both families and the economic fabric.
Furthermore, the leader of the PP has justified the approval by emergency means in the need to “respond immediately to those sectors that were demanding help” and that had not been heard for “a long time” and has referred to what was reflected in her electoral program: “Extremadura spoke a little over two months ago, asked for a change and now it’s time to act.”
The tax reduction, he clarified, will benefit all taxpayers, but it will do so, he specified, to a greater extent to those with low (less than 22,000 euros) and medium incomes, limiting the impact on the upper brackets. For example, those taxpayers with a tax base of less than 20,200 euros will have a saving of almost 300 euros per year while those with more than 60,000 euros will receive a saving of about 43 euros per year. It is estimated that the regional coffers will stop receiving around 39.8 million euros due to the reduction in personal income tax.
Regarding the ‘zero rate’ for new self-employed workers, this is the first measure of those that will make up the Stimulus Program for the Creation and Consolidation of Self-Employed Work 2023-2027, which is already being prepared and will also be approved. in a next phase. Guardiola has described this sector of workers as “the protagonists of economic development” and those who “have been and continue to be great sufferers today.”
In addition, the approved decree law establishes a 100% bonus on the Wealth Tax with the aim of attracting to this autonomous community “more talent with investment capacity”, that is, “people who can generate more opportunities”, as specified by the president of the Board. The objective of the elimination of this tax is for natural persons to establish themselves in Extremadura and establish their tax residence in the region. “We have to be able to attract more people, to attract talent and for that talent to have investment capacity, people who can generate more opportunities,” she said. To turn Extremadura, she has said, into a region that “does not penalize the taxpayer.”
On the other hand, and to compensate for the high cost of rentals and as a measure to promote the emancipation of young people, the deduction of the amounts paid for the rent of the habitual residence as well as the income limits is raised to 30%. required, setting them at 1,000 euros per year, which is increased to 1,500 euros in the case of habitual residence in a rural area of less than 3,000 inhabitants. In addition, it is included as a novelty that single-parent families will be able to benefit from this measure. At the same time, in tax matters, the tax on empty homes for large owners, which has not come into force, will be eliminated, and the tax benefits of the current Budget Law of the Autonomous Community will be maintained.
María Guardiola has also stressed the urgency of correcting “a situation of inequality” that hinders growth and which refers to the so-called registration tax. Thus, for certain types of vehicles, the applicable rate will be established at 14.75% to promote registration and to avoid relocation in the acquisition of vehicles and also be able to support this sector. In this way, the registration tax at the minimum legal rate will be set at 14.75%, to avoid “relocation in the acquisition of vehicles.”
Regarding measures of a social nature, the regional executive has approved, as a measure of recognition and support for Extremaduran families fostering minors, to increase the aid to these families from 169 euros to 360 euros for each minor taken in. Its application will have retroactive effect from January 1 of this year and will be paid next December with a benefit for 210 households.
Finally, the decree-law includes the approval of direct aid to cherry producers and also the increase in the budget item to promote the contracting of agricultural insurance. The objective is to help cherry farms for the damage caused by the storms of last May and June for which a maximum amount of 2,500 euros per hectare is set for a total of 1,400,000 euros.