MÁLAGA – The Spanish tax authorities have collected a record amount of taxes in the province of Málaga. In total, this will amount to almost €1.9 billion in 2022, an increase of 11% compared to the previous year.
The increase in tax revenues in Málaga is notable as the COVID-19 pandemic has had a significant economic impact on the region. Despite these challenges, businesses and individuals in Malaga have met their tax obligations, contributing to record revenues.
Factors that led to higher collection
There are several factors that play a role in the increase in taxes collected. Starting with the economic growth in the province that is reflected in job creation, the rise in wages and pensions, population growth that generates more taxpayers and, above all, the rampant escalation of inflation due to the contagion effect caused by the rise in the cost of gas, electricity and fuel.
Part of growth is due to high prices
The IRS itself acknowledges this by stating in its report that part of the high growth in 2022 (up 14.4% at the state level) is closely related to the rise in prices that is paradoxically suffocating families and businesses, coupled with an “intense recovery of the consumption”.
Improved collection processes
DiarioSur writes that according to the tax authorities, it is mainly the higher-income groups and companies that have contributed to the increase in tax revenues. In addition, the IRS has invested in new technologies and improved processes to simplify and speed up tax collection. Consequently, that contributed to the success.
Combating tax evasion and fraud
In Málaga, the tax office also actively cooperates with other government agencies and authorities to combat tax evasion and fraud. This has contributed to growing tax revenues and creating a level playing field for all taxpayers.
The tax authorities have indicated that the record amount of taxes will be invested in public facilities and services in Málaga, such as healthcare, education and infrastructure.