Major tax reform for middle and low incomes in Valencia region

by Lorraine Williamson
Valencia tax reform
del canto chambers 2

VALENCIA – Ximo Puig (PSOE) announced on Tuesday a tax reform that will lower the taxes of 1.3 million middle- and low-income taxpayers in the Valencia region and allow families to save €149 million. 

Valencia tax reform measures

Some of the announced measures include;

  • deductions for families with a mortgage
  • a 10% increase in the tax exemption amount
  • new tax brackets adapted to the current situation
  • an increase in the amount and beneficiaries of all existing deductions
  • free public transport for young people up to 30 years

This progressive tax reform for Valencia aims to help all people with an income of fewer than €60,000 per year. Furthermore, they should help promote economic activity and employment and protect those most penalised by inflation. Furthermore, the tax reform will already apply to the 2022 income tax with retroactive effect to January 1 this year. 

“While some cut taxes for the richest, this is helping the majority of society make ends meet,” because “if the goal is social justice, the way is fiscal justice,” said Puig’s argument.

Cumbre Villas

Support measures for crisis-affected industrial sectors 

Furthermore, support measures will be introduced for the most difficult industrial sectors, in particular ceramics, to complement public support to the gas-intensive sector up to the limit set by the EU. 

Related post: Spain will temporarily tax large fortunes extra 

A cooperation fund for the Valencian forests, endowed with €50 million, will be established. And measures will be taken to strengthen job creation, health, education, social care and access to housing. 

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