Murcia cuts regional part of income tax by 4.1%

Murcia cuts regional part of income tax by 4.1%

Murcia cuts regional part of income tax by 41

The government of the Region of Murcia approves this Thursday a general reduction in the autonomous section of income tax in the first four sections (incomes up to 60,000 euros), a measure that its President Fernando López Miras had already announced on May 27 and that it will take effect, after it has passed the Governing Council.

Treasury sources confirm the fall will be 4.1%, “in line with national wage developments” and above what the regional head announced in May when he said 3.5%.

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According to calculations by the Murcian Executive, this deflation will benefit around 330,000 Murcian, who will save a total of around eight million euros on their income tax return for 2022 (the next one will be submitted). It applies to taxpayers in the first four sections of the regional tax, i.e. for those with an income of up to 60,000 euros per year.

The government of López Miras thus joins the government of Isabel Díaz Ayuso in the Autonomous Community of Madrid and Juan Manuel Moreno in Andalusia, which this week approved this measure and also announced the abolition of the wealth tax.

Murcia had also put the abolition of this tribute on the table; However, Presidential sources concede that this will not be implemented immediately, but is a measure that is “under consideration”. They combine its abolition, which would be progressive, with an improvement in the funding that the Autonomous Community receives from the State. Murcia’s government has spent years demanding a change in the autonomous funding system as Murcia is the second worst funded municipality in Spain, behind only Valencia.

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The checkout technicians’ union GESTHA puts the wealth tax revenue in the region at 27.2 million euros per year, which is borne by around 4,500 taxpayers.

From the state government, they have insisted that personal income tax deflation comes “on top of other important tax cuts already in place”, such as the abolition of inheritance tax and gifting for Groups I and II in inheritances and also for Group III donations (brothers, uncles and nephews), which benefits around 114,600 donors.

The reduction in these taxes, the different deductions in the IRPF (fortnight) and those applicable to the tax on property transfers and documented legal acts, have brought Murcia taxpayers savings of one million euros a day in 2022, and therefore 1,400 million euros far in the legislature, according to the calculations of the regional government, which claims to be the municipality with the lowest taxes in Spain.