The collection of the Canary Islands General Indirect Tax (IGIC) has fallen by 40.7 million euros between January and November of this year compared to the same period of 2018, according to data from the Canary Islands Tax Agency and the General Intervention of the Autonomous Community made public today.
The amount collected until November 30 was 1,472.9 million euros, while last year at this time the amount amounted to 1,513.6 million, which represents a decrease of 2.6 percent.
After the specific and abnormal increase recorded last October, the accumulated collection figures show a decreasing trend, in line with the forecasts made in the middle of the year by the technicians of the Ministry of Finance, Budgets and European Affairs of the Government of the Canary Islands. However, we will have to wait to count the month of December for a complete and definitive analysis of the situation.
Unfortunately, the data confirms the estimates we had on the table regarding the decrease in tax revenues of the Autonomous Community, so the decisions we have adopted in this matter are fully justified. (Román Rodríguez)
Rodríguez insisted that tax cuts do not usually translate into higher revenue, as the political right maintains, especially if they are adopted in a context of economic slowdown, "as was already happening when the outgoing Government approved the half-point reduction of the IGIC".
The deviation is much more intense if the forecast made by the previous Government of the Canary Islands for the end of this year is taken as a reference. The current Budget Law sets an estimate of IGIC collection in 2019 of 1,659.4 million euros, which will make it virtually impossible for 186.5 million euros to be collected in December, the difference between the aforementioned forecast and the collection as of November 30.
Specifically, and according to estimates by the Canary Islands Tax Agency, it is likely that the decrease in revenue from the IGIC will finally be 72.7 million compared to the forecast made by the previous Government and 115.8 million compared to the net collection obtained in 2018, which stood at 1,702.4 million.
On the other hand, the IGIC import data also reveals a decreasing trend, since the amounts recognized but not paid -an advanced indicator- until November 30 have fallen by 37 million euros compared to last year.
It should be remembered that 58 percent of the IGIC collection goes to local corporations and the remaining 42 percent to the coffers of the Autonomous Community.
In addition, the total tax revenue could be at the end of the year 157.5 million euros less than calculated by the previous Government of the Canary Islands.
