Not only does the Treasury’s collection not stop growing, so are the citizens’ difficulties in making a living, especially in a difficult economic environment. In fact, inflation, which punishes family economies the most, is one of the factors that affect the family economy the most. Until November, the province of Alicante paid 759 million euros more to the Tax Office than in the same period last year.. Employment growth, wage and pension increases, and the recovery in corporate profits are other issues behind this strong rise.
Contribution of the people of Alicante to the public coffers reached 4 billion 328 million euros in the first eleven months of 2022This is a figure representing a 21% increase over the previous year and is six percentage points higher than the increase in Treasury revenues nationwide. This is also stated in the latest report prepared by the Tax Office, which shows that: the highest collection volume corresponds to income from Personal Income Tax (IRPF), with 1,738 million euros and 25% growth over last year.
This is more than a notable increase, according to the report in question. directly related to the increase in the number of employees.currently stands at unknown levels in the state of Alicante, which exceeds 812,000. In fact, the withholdings applied to payrolls represent the bulk of income from this tax. In this section, they remind us from the Tax Office, we also need to take into account the increases in salaries and pensions, which also benefit the public coffers.
Value Added Tax (VAT) collection, on the other hand, increased by 15% to 1 billion 702 million Euros in the first eleven months, which is very close to personal income tax. The description should be located at: general increase in prices caused by inflationAlthough it has softened in recent months, it continues unbridled.
company benefits
The third concept that brought the highest income to the Tax Office was Corporate Tax with 587 million, an increase of 28%. This increase underlined by the report positive development of company profits. All of these factors, however, were offset by the increase in returns and the negative impact of regulatory and management changes.
Antonio Pérez Rovira, Chairman of the Financial Commission of the Alicante Association of Economists, agrees with the assessments of the Tax Office and draws attention to the following: Citizens pay more taxes due to inflation. In his own words, “despite the rises in wages to partially offset the rise in prices, the reality is that these increases also encourage workers to pay more to the Treasury.”
He adds that this is because the personal income tax brackets have not been updated, which alleviates the impact of the salary increase. According to Antonio Pérez, the solution is deduct this taxThus, the effect of price changes will be eliminated, and workers whose wages are increased will continue to contribute to the public coffers as they have done so far, without losing their purchasing power.
The expert, on the other hand, pointed out that the VAT reduction announced by the Government for basic foodstuffs should also lead to a decrease in Treasury revenues, and warns, “However, if this discount is applied – it will be seen – it will be seen effectively in supermarkets and consumers will notice this.
Generalitat also increased its revenue in Alicante by 22%
The province of Alicante continues to be the province that contributes the most to the filling of Generalitat’s coffers in terms of collections. According to data provided by the Valencian Tax Office (ATV), it contributed 1,037m euros after an increase of 35.9% through November, while 849 in Valencia and 209 in Castellón.
And this leadership is made possible above all by the traction experienced by the home buying and selling market, where Real Estate Transfer Tax, which includes the real estate sector, has grown by 46% in these first nine months. up to 708 million euros compared to the same period last year.
The data presented by the agency reveals that the second collection concept is Documented Legal Transactions with 115 million euros after an increase of 12%; and Inheritance Tax, which increased 14% to 87 million. Heritage ranks fourth with 52 million, up 23%.