Alicante Province: Tax Cuts, Local Investment, and AI Leadership Ambitions

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Diputación de Alicante plans to eliminate the state surcharge next year as part of a broader effort to support the local business community during the crisis. The Economic Activities Tax (IAE) will be fully abolished in 2023, a move endorsed by the government team led by Carlos Mazón and backed by the People’s Party and Citizens groups, with opposition from the Socialist Party and Compromís. The proposal, which could benefit more than 8,500 companies, reflects a concerted push to ease administrative costs for the provincial economy.

Mazón argued that the proposal aligns with the government’s long-standing fiscal policy aimed at reducing tax burdens on companies and freelancers in the province. He noted an amendment to the tax regulation that allows a reduction for businesses billing over one million euros in 2021, cutting the rate from 20.5% to 10%, with a further 50% reduction planned for 2022, leaving a 5% level. He emphasized that this course of action would generate substantial savings, estimated at nine million euros across 2021–2023, and stressed the need for tax relief to support productive sectors amid criticism from the opposition, which he described as opportunistic and anecdotal. Mazón also took aim at proposals from other regional bodies, suggesting their plans lacked originality compared to the tax relief being pursued locally.

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Gerard Fullana of the Compromís Group criticized the IAE surcharge removal as underfunding the province, suggesting that higher funding for Diputación (to 30%) would be fairer, as seen in neighboring Valencia and Castellón, while noting the measure would impact only a small portion of local companies. Toni Frances, representing the Socialist Group, termed the cut unacceptable, arguing it would not yield positive effects for companies or for the state economy as a whole.

In response to the criticism, Mazón stated that Diputación de Alicante would proceed with further measures, including more than 36 million euros in extraordinary funding in the current year to assist self-employed workers, small and medium-sized enterprises, and families. He reaffirmed the mandate to support the productive economy and to act in the interests of the regional business community.

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At the general meeting, the assembly unanimously approved a proposal to include in the 2023 budget an initial ten million euro line to help municipalities manage electricity bills. The Generalitat and the Government were also urged to authorize 60 and 120 million euros respectively for all municipalities of the province for the same purpose.

The motion, initially submitted by the Socialist Group and later supported by all groups after an integrity amendment from the PP and Cs, highlighted that rising energy costs strain municipal coffers and called for coordinated state assistance. A representative explained that the Electricity Supply Framework Agreement negotiated with the provincial procurement center would support councils that participate in the agreement, and argued for favorable conditions regarding gas caps and renewable energy provisions in local government contracts worth more than 10 kilowatts.

Investments

During the proposals section, Compromís urged Diputación de Alicante to align its budget with broader regional investment plans, arguing that Valencia’s infrastructure and service investments far exceed those in Alicante. Some legislators questioned the data and suggested joining broader claims to address a budget deficit of hundreds of millions that would otherwise fall on Alicante.

One deputy pointed out the relative financial capacity of each province’s residents, noting that Alicante currently has fewer resources than its neighbors. He argued that a fair comparison should consider the available budget, and that Alicante would need substantially more funding to achieve parity. He also defended the existing investment tracks, citing that annual plans already allocate tens of millions to the Business and Services Plan and related initiatives, far exceeding what critics claimed. The discussion highlighted concerns about translating regional funds into equitable outcomes for all municipalities in the province.

The debate included calls for a provincial compensation mechanism to bridge gaps so that all residents, regardless of location, benefit from consistent support across the Generalitat’s cultural and infrastructural priorities.

Cleaning

The Provincial Assembly, backed by the PP and Cs and with support from the opposition in this case, approved a motion for the Júcar and Segura river and boulevard cleanup program. The governing team stressed that river maintenance is a shared responsibility in the face of new weather events and invasive species. There was also support for the Generalitat Valenciana’s leadership on this issue and for leveraging regional strength to ensure adequate environmental management.

During the plenary, the assembly unanimously backed a candidacy for Alicante to host the Spanish Artificial Intelligence Agency (AESIA). The motion supported by all spokespeople endorsed the Generalitat’s ongoing work on this matter and reflected broad consensus on local innovation initiatives.

Support for

The October ordinary general assembly closed with unanimous support for a corporate statement urging the Generalitat to involve professionals in future measures to ease fuel costs and to explore exemptions for road-use networks. The assembly also called for stronger oversight on the entity responsible for the execution of the commercial agency activities, underscoring a commitment to practical, on-the-ground support for local businesses.

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