Treasury Closes 2021 With An Increase Of 4.7% In Collection

The Junta de Andalucía has closed the 2021 financial year with an increase of 4.7% in the collection of taxes transferred from its own management, which has reached an amount of 2,148.1 million euros compared to the 2,051.35 million recorded in 2018 , so that the three tax reductions applied by the Andalusian Government have generated a positive balance of almost 100 million euros for the regional coffers, according to the Tax Collection Notebooks published monthly by the Ministry of Finance and European Financing.

The Ministry of Finance explains in a statement that “the taxes assigned for their own management, which are the taxes on which the Andalusian Government has focused its rate reduction policy from 2019 to 2021 with the aim of promoting economic activity and employment “, are the Inheritance and Gift Tax (ISD), Wealth Tax , Property Transfer Tax and Documented Legal Acts ( ITPAJD).

The Treasury highlights the upward behavior of the Wealth Tax , whose collection has increased by 36.6% in this period, to close to 110 million , as well as the evolution shown by Property Transfers , whose revenues have reached 1,326, 7 million , which represents an increase of 10.5% compared to the balance of fiscal year 2018.

For its part, the 99% discount on the Inheritance and Gift Tax , which has practically meant the disappearance of this tax for Groups I and II of kinship, and which has incorporated new advantages for Groups III from this year 2022 and IV, it has barely meant a decrease of 13.6% in income, which stood at 258.5 million euros.

Publication
The Andalusian Minister of Finance and European Financing, Juan Bravo, has disclosed some of these data at the presentation of the book ITPAJD: Current situation and proposals for the future, edited by the Tax and Competitiveness Foundation, in which he has defended that “every fiscal measure that is adopted must be oriented to economic recovery “, to initiatives that encourage consumption and investment; In short, it is about designing ” taxation for employment “, which is the final objective pursued by the three tax reductions that have been implemented in Andalusia so far in the legislature, Bravo has specified.

Juan Bravo asks the central government “not to increase the pressure on taxpayers”
The Minister of Finance has elaborated that the tax reform proposed by the central government “must think of a tax system that does not increase the nominal pressure on taxpayers, but quite the opposite, that manages to lower unemployment rates so that, by having more people working, increase tax bases and thus obtain the necessary collection to offer quality essential public services”.

“Not everything is raising taxes, we should also talk about efficiency and reducing superfluous public spending incurred by public administrations,” said Bravo, who was accompanied by the Secretary General of the Treasury, Ignacio Méndez, and by Joaquín Cuesta Domínguez on behalf of the Tax and Competitiveness Foundation.

The event was also attended by Gonzalo Rincón de Pablo (Garrigues), who addressed a general view of the publication’s analysis work; Javier Pérez-Fadón (State Treasury Inspector), who has conveyed some general considerations about the ITPAJD; Juan Calvo Vérgez (Universidad de Extremadura), who has analyzed the tax base and the regulation of the reference value, and Tamara Iglesias (EY Abogados), who has delved into the tax base in the lien on Notarial Documents. The event closed with a discussion between the speakers, moderated by the General Director of Taxes of the Ministry of Finance and European Financing, Manuel Vázquez.

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