New Measures Announced by the National Executive for La Palma Reconstruction
The President of the Presidency, Relations with the Courts and Democratic Memory, Félix Bolaños, announced three new national measures following the eighth Joint Commission meeting on La Palma’s reconstruction. The steps include an extension of exemptions from Property Tax IBI and Economic Activities Tax IAE for the current year, 2022, to ease the burden on residents affected by the volcanic crisis.
Previously implemented in 2021, the measure now extends a moratorium on new item and mortgage payments worth 6.5 million euros. The extension provides six additional months of relief for families trying to purchase property. It also covers residents unable to access homes in the Puerto Naos and La Bombilla areas due to gases no longer compatible with human life.
The Congress of Deputies approved a 60 percent exemption on Personal Income Tax IRPF, a move that sparked differences among Joint Commission participants on how La Palma’s reconstruction should proceed. Representatives of the PSOE along with regional president Ángel Víctor Torres and the mayor of El Paso, Sergio Rodríguez of the CC, with backing from the PP headed Cabildo, pressed for rapid compliance with the mandate from the Lower House. They rejected the measure as unjust, while Bolaños urged a cautious review by the Executive Board before any final decision. A photo of Pedro Sánchez accompanied the coverage.
Sergio Rodríguez, who also serves as secretary of the CC Organization in La Palma, led the charge to have the Government honor the agreed terms as soon as possible. He stated that a 60 percent income tax reduction for La Palma residents lacked cross-branch support and claimed that the Government of Cabildo and the Canary Islands did not back the proposal, emphasizing the need to revive the island’s economy. The objective, he argued, is clear and fair.
Later, Palmero President Mariano Zapata clarified that the island would back any tax relief to which it is entitled and highlighted the potential for attractive taxation policies to attract companies willing to invest in La Palma. He pointed out a focus on tourism due to a current shortage of accommodations on the island, underscoring the importance of leveraging hospitality assets to drive recovery.
Ángel Víctor Torres expressed strong opposition to a direct reduction in personal income tax through aid and tax credits for affected residents. He reminded that the Canary Islands framework prioritizes fair and progressive taxation, where those with greater means contribute more. He argued that a broad tax cut would not reach a substantial portion of society, noting that roughly two thirds of the population might not benefit from such a measure.
Félix Bolaños responded with measured restraint, explaining that the Government would review all resolutions approved during the Nation in State Debate to assess their alignment with overarching policy. He stressed that there are no doubts about supporting the island with tax-related assistance when appropriate, and that the Government remains attentive to the island’s needs.
Torres added that the restructuring plan had been the product of months of work and more than fifty meetings with groups and residents affected by the crisis. The plan identifies areas impacted by lava flows and notes that recovery will take years in the most affected zones. He described steps towards a participatory zoning document and expressed hope that statutory decrees would be issued before year-end to finalize those zoning measures. He emphasized the need for a practical approach to remote areas that remain vulnerable to the volcano.
In line with these objectives, Bolaños affirmed that urban planning would position La Palma as a model of sustainable regional development. He claimed that the work directed at this goal was thorough and well coordinated, designed to balance relief with long-term structural improvements that support economic resilience for households and businesses alike.
All participants at the Commission underscored the urgency of combining immediate relief with strategic planning. The discussions highlighted how tax measures, housing support, and targeted incentives could form a cohesive package to accelerate reconstruction, protect vulnerable families, and attract investment to revive tourism and other key sectors on the island. The dialogue reflected a shared commitment to fairness and practical outcomes, with the understanding that policy choices must serve both short-term recovery and long-term stability for La Palma. [Source: Government statements and press briefings]