Madrid approves the law to shield itself from the Government’s tax reform | Economy

The Governing Council of the Community of Madrid has approved, in its meeting this Wednesday, the Draft Law for the Defense of Autonomy Finance to “shield its economic and fiscal policy from the one it prepares the Government of Spain and that will mean a general increase in taxes citizens,” according to the regional government.

“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)”, as reported by the Executive Madrid in a statement collected by Europa Press. Thus, as highlighted, “the Community of Madrid will be able to safeguard the exercise of its financial autonomy, both from the perspective of expenses as well as income, imposing on the regional public powers its defense of any attempt to undermine it”.

In this sense, “the Assembly of Madrid and the organs superiors of the Government and Autonomous Administration to react with all the mechanisms available to them in national, European or international, before any law, regulatory provision or act of the State with force of law that violates fiscal co-responsibility and financial autonomy region of”.

The norm will regulate the autonomy of income, specified in the capacity of the Madrid Executive to regulate and execute its own taxes, surcharges on state taxes and taxes assigned by the Condition.

The autonomy of spending is also regulated in accordance with the principles “efficiency, effectiveness and economy”, as well as “sustainability and budget stability. Likewise, “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, the citizens of Madrid will be informed, among others aspects, of the final destination of the contribution they make to the income or their tax situation in relation to other communities autonomous or, where appropriate, foreign regions.

With the approval of this Bill for the Defense of Autonomy Financial and Tax, which is now beginning its legislative process to its final approval in the Assembly of Madrid, the Community of Madrid is endowed with a new legal instrument that will allow it to “safeguard their powers in tax matters and deal with a so-called tax harmonization.

“This initiative of the Government of the nation only seeks to raise taxes the people of Madrid and undermine the freedom of the region to manage its economy. The free exercise of that financial autonomy, thanks to 17 years of tax reductions by successive regional governments, has allowed a saving close to 53,000 million euros, that is, 16,500 euros by taxpayer”, they have indicated from the Government that presides over Isabel Diaz Ayuso.

In addition, they have argued that “low taxes, together with a policy efficient spending and compliance with budget stability, have made Madrid the largest economy in Spain, being the region that contributes the most to the national GDP, with 19.3% in 2019, according to accounting regional of the INE”.

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