In a record year for tax collection, the Generalitat of Catalonia’s own taxes once again demonstrate their lack of economic effectiveness. Between January and September 2024, the 10 regional taxes generated 3.1% less income than the previous year, according to the data of the Governmentwith drops that were close to 40% if we go into detail about some of these taxes.
On the other hand, transferred taxes (Inheritance and Donations, Patrimonial Transfers and Documented Legal Acts and gambling taxes) reaped 9% more in year-on-year terms, while the figures managed by the State Tax Administration Agency (AEAT), Personal Income Tax , VAT and excise taxes (tobacco, alcohol, electricity and hydrocarbons), collected an additional 22%, 19% and 6%, respectively.
Although this year is on track to surpass the highest level of collection achieved in 2006 by the Tax Agency of Catalonia (ATC), the Generalitat only raised 253 million euros from its native figures in the first nine months.
This despite the fact that the ATC’s total income increased by 7.8%, to 4,056 million euros, highlighting the year-on-year improvement in Inheritances and Donations (+14%) and in Asset Transfers and Documented Legal Acts (+8%). . This total figure represents an execution of 88.2% of the 2024 budget forecast, extended compared to the previous year.
As a whole, the Generalitat obtained 26,414 million euros in tax revenue, 17.4% more than in 2023. This growth is fundamentally attributed to the settlement of taxes subject to advances, that is, personal income tax, VAT and taxes. specials.
The good pace of collection in Catalonia runs parallel to that of the State: the treasury obtained almost 50,000 million euros in the tenth month of the year, an annual increase of almost 10%. And the fiscal years of 2021, 2022 and 2023 were already very positive due to the escalation of inflation.
Ineffective taxes
This golden situation for the public coffers contrasts with the low collection of own taxes, which in some cases collapse in a single year. This is the situation with the tax on non-productive assets, which taxes real estate, vehicles, boats, aircraft, artistic objects and jewelry in the hands of legal entities, and which had a 39% lower return than the previous year.
Also taxes on the environment, which punishes the environmental impact of certain economic activities, and on packaged sugary drinks fell by 10% and 13%, respectively. Others, such as CO2 emissions from vehicles, did not register any variation compared to 2023.
‘Foment’ alert
Traditionally, the panoply of own taxes has generated very little cash in Catalonia, although it makes it difficult for companies to operate and scares away investments that could be located in the community, as it has warned on several occasions. Promotion of Treball.
In its green paper on Catalan taxation, presented shortly before the last regional elections, the employers’ association indicated that “a cost-benefit analysis should be carried out on the current own taxes and those that may be created in the future, quantifying as costs both those associated with legislative, bureaucratic and judicial procedures, as well as with their possible impact on consumption, savings and investment decisions.
“In particular, it is worth highlighting the litigation associated with some of these taxes, for different reasons, which has so far caused three declarations of unconstitutionality in the case of Catalonia,” the business organization noted.
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