Alicante, (EFE).- The first plenary session of the new Valencian Government has approved this Friday to urgently begin the preparation of the bill aimed at abolishing the inheritance tax and the donation tax for children and parents in the Community, with effect from May 28, the day of the regional elections that gave rise to the change in the Consell.
Mazón has announced it in an appearance
This was announced by the president of the Generalitat, Carlos Mazón, in an appearance after the plenary session of the Consell, which was held at the Archaeological Museum of Alicante (MARQ), in which he defended that the new Executive does not find it “justice, nor dignified”, especially in the case of parents and children, to collect “by the fact of death”.
“They will go down in history”
Mazón has insisted that these taxes “had to go down in history” in this Community, where only in the last legislature there were 20,862 waivers of inheritances “worthily earned by their parents”, while in the first quarter of this year waivers have increased by 24% compared to the previous year.
The president has highlighted the “low incidence” that these taxes have on income in the Generalitat, since the inheritance tax represents “barely 1%” and the donation tax “barely 0.1%”, and has considered that this decrease will be offset by the reactivation of the economy that will cause the process started this Friday.
Contribute to savings and investment
The objective of this measure, he insisted, is to reduce the tax burden to prevent an inheritance from becoming a “serious financial loss for many families, who have to pay their bills, without the inheritance implying any economic benefit or a real increase in their assets”.
Likewise, it has ensured that sometimes this tax conditions or limits the behavior of taxpayers in matters such as savings or investment.
The head of the Consell has also pointed out that it is a tax that is levied on the transmission of assets and income that have already been taxed before according to their nature, for which reason he has stressed that the approved measure implies that “we will never again pay twice for the effort and sacrifice of a lifetime”.
Mazón explained that, especially since 2017, and in order to maximize the collection purpose of the tax, the existing bonus has been reduced, and is currently applied, in general, at 50%, a percentage that will reach 99% with the approval of the new bill.
In this sense, he specified, the Consell has entrusted the Ministry of Finance, Economy and Public Administration with the initiation of the processing of the procedure for the preparation of the draft Law for the modification of Law 13/1997, of December 23, which regulates the regional section of personal income tax and other assigned taxes, with regard to Inheritance and Gift Tax, which will be approved by Les Corts.
To questions from journalists at the press conference after the plenary session, Mazón was convinced that the abolition of the tax must necessarily cause a reactivation of the economy and a placing on the market of this heritage, “the vast majority, real estate.”
“Value added tax through economic activity is a much fairer way to collect than by the fact of death,” he defended.
In parallel, the president added, “we will continue to reduce superfluous expenses, the political fat of the Consell.”
“The economic reactivation, the putting into action of this patrimony in the market and the reduction of spending will more than compensate” for the abolition of these taxes, he affirmed.
As he has specified, the waivers of inheritances have increased by 24% during the first quarter of 2023, which has meant that 1,558 Valencians have renounced this heritage, and has therefore considered the measure “absolutely justice”. EFE
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