20 Apr Andalusia cuts three sections of personal income tax and benefits 3.7 million people
-Workers, pensioners and the self-employed will notice the measure from 11 April
As of April 11, Andalusians will see how the controversial inheritance tax is definitively eliminated. The measure, announced by the new tenants of the Palace of San Telmo, the Government formed by PP and Citizens, is nothing more than compliance with one of the agreements reached between the two formations, within the framework of a gradual tax reduction, which this Tuesday reported the Junta de Andalucía.
The elimination of Inheritance and Donations for spouses and direct families is included in the approval of a decree in which 99% of the tax quota is deducted for kinship groups I and II. By means of this tax relief, the Andalusian institution reminds us, this region is among the Autonomous Communities with the lowest taxation as far as this tax is concerned.
The end of a tax grievance
But the elimination of Inheritance and Donations was not the only object of a tax reduction that will be applied gradually, according to official sources. In addition, the Board has approved a cut in personal income tax (IRPF), which will be implemented progressively from April 11 to 2023. Throughout these budget years, three income tax brackets will disappear, going from eight current brackets to the five to be reached in 2023.
However, the first bracket of the tariff (that of the lowest incomes) will begin to be reduced by 2019 and will reach definitive taxation in 2020. Workers, pensioners and the self-employed will be the first taxpayers to notice it in their pockets from the first moment it comes into force, that is, from 11 April.
This drop, explain official sources of the Government, will not have a budgetary impact on revenue in Andalusia until 2021, when there will be final settlement with the State by deliveries on account of the autonomous tranche of personal income tax for the year 2019. It will be from 2013 when the Board returns to workers, pensioners and self-employed Andalusians 149 million euros annually, in the application as a whole of a measure that will benefit 3.7 million Andalusians.
The details of this tax reduction on the IRPF tax, with a fall of three brackets, would be applied as follows: the first income bracket will go from 10% to 9.5%, unify brackets between 20,000 and 28,000 (which is taxed 15%) and between 28,000 and 35,000 (which is taxed at 16.5%), in one. Thus, between 20,000 and 35,200, 15% will be taxed. In addition, the brackets between 35,200 and 60,000 are integrated, becoming taxed from 19.5 to 18.5%. And finally, from 60,000 onwards, 22.5%, and the maximum rate will go from 25.5 to 22.5%.
Fourteen times less than what will be paid for court judgments
In response to criticisms that the government of Juanma Moreno Bonilla and Juan Marin receive from the PSOE, for a tax cut, which in the opinion of the left, detracts the money needed to maintain social spending, and therefore the improvement of these resources, the new Andalusian Executive wields that the economic impact of measures such as the suppression of donations, only for 2019, is 14.7 million euros, a figure far removed from what the Board will pay for court rulings on management errors in their council.