In Alicante, the Provincial Council announced that next year the Economic Activity Tax (IAE) will be fully abolished, removing the national surcharge to support local businesses through the crisis. The decision, backed by the governing team led by Carlos Mazón, was approved at a plenary session on October 5, with votes in favor from the People’s Party and Citizens groups and opposition from Compromís and the Socialist Party, which joined Reconciliation in voting against. The complete elimination of the tax, set to take effect in 2023, is expected to benefit more than 8,500 companies.
Mazón defended the proposal as consistent with the government team’s political line focused on fostering a state that supports growth in recent years. He noted that a planned amendment to the tax regulation would further reduce the levy on companies with billing over one million euros in 2021 from 20.5 percent to 10 percent, followed by a further 50 percent cut by 2022, leaving just 5 percent.
Pensioners face a January 2023 change in their pension supplements
The head of the institution cited nine million euros in overall savings for the period 2021-2023 and emphasized the consistency of the People’s Party’s fiscal stance in supporting businesses and freelancers across the province, despite opposition criticism. Critics labeled the move opportunistic and anecdotal. Mazón argued that lowering taxes is a priority for the party, aimed at helping those most in need, while others have proposed increases. He also criticized a lack of originality in a tax-cut plan announced by the Generalitat president.
City Council engages with the Consell in the AI race
Gerard Fullana of the Compromís Group argued that removing the IAE national surcharge would underfund the province, while he suggested increasing Diputación’s budget to 30 percent, following moves by Valencia and Castellón, noting that the impact would affect only about 5 percent of regional companies. Toni Frances, representing the Socialist Group, called the reduction absurd, contending it would not positively affect companies or the broader economy.
In response to these criticisms, Mazón highlighted that the Alicante Provincial Council supported more than 36 million euros in extra funding this year to assist the self-employed, small and medium enterprises, and families. He stressed the council’s mandate to back the productive economy.
Aides
At the general meeting, a proposal unanimously advanced by all groups included a plan in the 2023 budget to dedicate an initial ten million euros to help municipalities manage electricity bills. Additionally, it was requested that the Generalitat and the Government authorize 60 and 120 million euros, respectively, for all municipalities in the province for the same purpose.
The motion, originally submitted by the Socialist Group, gained broader support after a integrity amendment from PP and Cs. The Socialist deputy Patricia Macià noted that rising energy costs burden municipal coffers and urged continued support for municipalities. Deputy Juan de Dios Navarro explained that the Electricity Supply Framework Agreement with provincial procurement centers would guide the proposed amendment, and he indicated that the government would not charge a gas cap for contracted goods with 100 percent renewable origin and VAT relief for local government contracts exceeding 10 kilowatts.
Investments
Within the proposals, Compromís urged Diputación de Alicante to mirror investments seen in Diputación de Valencia, arguing that the Valencian Community’s infrastructure and services budget is significantly larger. Fullana responded by noting that the number of investments at Alicante would be evaluated in light of the broader regional context.
Infrastructure spokespeople questioned Compromís’s motion, pointing out that one of the Valencian Community’s three councils has highlighted a budget deficit of 158 million euros that would affect Alicante. The discussion emphasized comparing available resources. The debate highlighted that Alicante, with a population nearing 1.9 million and a budget around 272 million euros, receives notably less per citizen than neighboring provinces. Critics argued that Alicante should receive additional funds to reach parity with Valencia and Castellón.
The infrastructure leader explained that annual funds flow into work plans. The province has invested in the Business and Services Plan and other initiatives, with figures suggesting substantial yearly investments beyond some proposed amounts. He asserted that a portion of the budget is allocated to correcting legacy mandates from the Generalitat and that cultural investments by the Generalitat have been uneven. The goal was to ensure fair funding across provinces so that residents enjoy comparable levels of public investment.
The discussion also touched on a Generalitat compensation fund meant to balance provincial disparities, ensuring that all residents receive similar levels of support regardless of where they live.
Cleanup
A motion from PP and Cs, supported by the opposition, called for urgent river, valley, and boulevard cleanup across the Alicante province under the Júcar and Segura Hydrographic Confederations. Government members urged a stronger regional effort to tackle the DANA threat, stressing the responsibility of confederations to maintain waterways and control invasive species.
At the plenary, groups unanimously supported Alicante’s bid to host Spain’s Artificial Intelligence Agency, AESIA. The collective declaration endorsed the Generalitat’s ongoing work in this area and allowed for the withdrawal of a Compromís motion on the same objective.
Support for industry
The October ordinary general assembly closed with unanimous support for a corporate statement urging the Generalitat to include professionals in future measures to offset fuel costs and ease road-network charges. It also called for stronger controls over the association established for the execution of the commercial agency activity.