Selective and temporary tax adjustments to help the sectors most affected by the latest crises will continue this year, at least until June 2023, thanks to the extension of the measures already in force and other new measures contained in the General Budgets of the Autonomous Community, which have just come into force.
The Canarian Vice-President and Minister of Finance, Budgets and European Affairs, Román Rodríguez, explained today that the Government of the Canary Islands is fully aware of the difficulties that families and businesses on the islands are going through, especially those with fewer resources, and assured that the uncertainty in the medium term advises extending all the measures that have already been put in place in recent years, since the outbreak of the pandemic.
Thus, yesterday the extensions of five measures promoted at different times during the current legislature and five other new ones came into force, all of them related to the Canarian indirect general tax (IGIC).
In addition to these adjustments to indirect taxation, there is an adjustment in the regional section of personal income tax for medium and low incomes, which, although it takes effect on January 1, 2022, will be implemented in the income tax return to be filed this year.
Specifically, an extraordinary deduction for the rise in prices is enabled; fifteen current deductions are increased between 20% and 40% and the taxable base of the first four regional sections is extended. These measures will mean a tax saving of 100 million euros for Canarian taxpayers.
The extraordinary deduction for price increases will be 225 euros for taxable bases of up to 20,000 euros (23,300 euros of gross salary); 175 euros for bases of between 20,000 and 25,00 euros (28,700 euros of gross salary) and 125 euros for bases of between 25,000 and 30,000 euros (34,000 euros of gross salary).
Similarly, up to fifteen current deductions are improved, of which thirteen are increased by 20% and two by 40%; the latter are for the payment of mortgage installments and works in housing for disability.
The adjustment in personal income tax benefits 95% of Canarians
The extraordinary deduction will benefit 85% of taxpayers; the adjustment of the sections of the regional tariff, 95%; and the increase in deductions, 35%.
Thus, according to some of the technical simulations carried out by the Treasury, a married couple with joint salaries of 36,600 euros; two children aged 10 and 12, who have study expenses of 400 euros, medical expenses of 600 and payment of mortgage for the habitual residence of 7,200 euros per year could save 700 euros in their next personal income tax return referring to the fiscal year of this year.
With regard to the IGIC, the Government has decided to keep the modules of the simplified regime of the IGIC for all Canarian taxpayers unchanged this year, while extending the tax relief measures to the people of La Palma, especially those with tax domicile in the municipalities of El Paso, Los Llanos de Aridane, Tazacorte and Fuencaliente, with a reduction of quotas of up to 30% in this regime.
The application of the 0 rate of IGIC is also extended to certain operations or deliveries of goods to those affected by the eruption and to deliveries of sanitary material against Covid. In addition to these four measures, the extension until June 30, 2023 of the refund of 9.9% of the fuel tax to carriers, farmers and ranchers.
As main novelties in indirect taxation, the Department of Finance has promoted 0 taxation in the IGIC of electronic books -which are equated to paper books- and the increase of feminine hygiene products also covered by this type.
Similarly, the rate of IGIC on the delivery or import of products for animal feed is reduced from 3% to 0% and the general rate of 7% is lowered to 3% for certain goods transport services, such as home delivery, courier and moving.
To all this, is added the 100% bonus during all of 2023 of the rate of direction and inspection of works.
The Canarian Vice-President recalled that
