PNV, pp and PSE approved a 60% reduction in corporate income tax in Bizkaia
- The Bizkaia General Boards last Wednesday approved a 60% corporate tax deduction, in terms of 2019 results. The extraordinary tax measures approved by the Provincial Council of Bizkaia between April and May have been exceeded and companies will have to pay less for their profits. The ELA trade union has warned that such decisions can lead to "social cuts" in the Basque Country.
With the votes in favour of PNV, PP and PSE and the votes against EH Bildu and Elkarrekin Podemos, on Wednesday the proposals for fiscal measures by the Council to deal with the coronavirus crisis were put forward in the General Meetings. José María Iruarrizaga, the Deputy Foreign Minister of Finance and Finance, considers that these measures "aim to make economic recovery as fast as possible".
Micro-enterprises and families have approved deductions for aid or job creation in the General Boards. But among all the measures, it stands out that companies can apply a 60% deduction on corporate tax returns from 2019, provided that the result of their accounting has been halved and they invest in R & D. EH Bildu has accused governing parties of taking "short-term" measures to end this situation.
ELA also criticises the fall in taxes on company profits: Mikel Noval explained that "the decision is unfair, against solidarity and against what needs to be done at the moment". The union has warned that such measures will lead to "more social cuts" in collective bargaining: “If tax reform is not carried out to increase revenue, this year’s planned drop in revenue, some 3 billion in the CAV, will lead to brutal cuts.”
ELA recalled that with the 2008 crisis, health, education and social services were cut as a result of the deficit and public debt.
Corporate Tax was amended in 2017 following the pact reached between PNV, PSE and pp which agreed to reduce the nominal rate of large companies from 28% to 24%. The overall amount paid by CAV tax companies in recent years for their profits has been halved – in 2007 they exceeded EUR 2 billion in the CAV and in 2016 close to EUR 1 billion in 2017- and it seems that developments will continue to decline, as those who govern seek to rely on "private initiative" for economic revival, according to PNV Jon Andxa.
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