VALENCIA – The government of the Valencian Community plans to cut 70 taxes. These and more measures in the Plan Reactiva aim to deal with the social and economic crisis caused by the war in Ukraine.
Ximo Puig, president of the Generalitat, announced the measures on Saturday. Before that, he met with the social partners (the trade unions CCOO, UGT, and CEV). Moreover, he should announce that one of the measures is a 10% reduction of taxes in Valencia.
“The question we asked ourselves was what can we do to bring prices down,” the president said. The four main pillars of Plan Reactiva are:
- Fight against inflation
- Help for companies, the self-employed, and families
- Measures for efficiency and energy savings
- Actions for greater energetic independence
The plan is financed from the Generalitat’s funds, money from FEDER, FSE, and the EU’s Recovery Fund.
Puig could probably reveal that the 10% tax cut will apply to 70 taxes, from general government administration to the public sector. These tax cuts are the main contribution of the Generalitat in the fight against inflation.
Next week, the plan will be worked out in detail that must be the Valencian answer to the crisis.
National shock plan
Ximo Puig seems to follow the lead of the Spanish Prime Minister. Last week Pedro Sánchez proposed a package of measures worth a total of €16 billion. These measures together form the National Shock Plan to alleviate the economic consequences of the war in Ukraine.
The national shock plan will be in effect until June 30 and has five pillars:
- Help for families and workers
- Supporting the business fabric
- Support to the transport sector
- Cybersecurity
- The energy sector
20 cents bonus per litre of fuel
The first section includes the bonus of 20 cents on every litre of fuel for all users. In addition, ERTEs can again be activated to prevent redundancies and thus protect employment.
