General policy discussion with many premieres
Valencia’s regional government led by President Ximo Puig announced a package of measures designed to cushion households from rising prices. A key part of the plan is a 100 euro tax deduction aimed at homeowners meeting certain income thresholds, intended to ease inflationary pressure for families facing higher living costs.
The declaration was delivered by the head of the Consell during a session focused on public responses to inflation. The measures are framed as part of a broader policy debate that seeks to shield residents from the impact of price increases and to chart a proactive path for the regional economy.
Eligibility for the tax relief targets individual incomes up to 30,000 euros and joint filings up to 47,000 euros, ensuring support reaches a broad segment of taxpayers.
Another core element of the plan expands free public transport for all residents under 30 through the end of the year. This includes metro, tram, and bus services and is projected to save roughly 135 euros per teenager. With one and a half million Valencians under 30, the policy aims to relieve the financial burden on younger residents while supporting mobility and education access.
Tax reform
In addition, the Consell is advancing a tax reform targeted at low and middle earners with incomes up to 60,000 euros. The reform centers on three pillars. First, the tax-free allowance increases by 10 percent for all citizens. Second, a newly structured autonomous personal income tax framework is introduced for the year, reflecting current economic conditions. Third, all existing tax deductions and credits are raised by 10 percent. The Consell president argued that more people would benefit from these reductions as the changes take hold.
These measures are designed to take effect retroactively from January 1 of the current year and would apply to 2022 income. The package targets income between 25,000 and 30,000 euros for the deduction while still addressing households with incomes above 60,000 euros through targeted relief.
As stated by the regional president in remarks to the Valencian Parliament, the three initiatives are expected to aid 1,344,000 Valencian taxpayers, representing about 97.4 percent of tax filers, including many earning under 60,000 euros. The plan is projected to deliver an average saving of roughly 111 euros per taxpayer, with an aggregate impact of about 149 million euros for families.
Overall, the Valencia authorities emphasize that the reform will provide tangible relief for a broad cross-section of residents and will strengthen household budgets in the face of inflation. The discussion reflects a measured approach to fiscal policy, combining income support with mobility and reform that aims to sustain consumer spending and economic stability across the region. [Citation: Consell de Valencia]