Generalitat president Ximo Puig unveils a plan to resolve the tax issue
Puig, the head of the Generalitat, has signaled a clear path forward as inflation pressures grow and the Ukraine crisis continues to affect the economy. A special extraordinary general meeting is planned for next Monday to approve the tax packages, alongside the accompanying law. This marks Puig’s first formal message from the Cortes rostrum since July, and it is expected to shape the opposition’s focus on tax policy amid broader debates about the Sánchez administration. While Puig has set a date, members of the Valencian Government stress that negotiations are not finalized. The policy talks remain active as discussions continue about raising tax obligations on higher earners and those with substantial wealth. Puig’s public countdown adds pressure to the three-party alliance’s agenda.
“We are working in the Community for the rebalancing of State Budgets”
Ximo Puig – President of the Generalitat
The Valencian Government plans to split the approval of the measures into two tracks. One track applies a tax deduction for incomes below 60,000 euros, with retroactive effect from 1 January 2022. The other track contemplates a rise in taxes reflected in the Tax Measures Law from 2023, potentially touching wealth tax or higher income tax rates for rents starting from 120,000 euros. In the chamber, the Valencianists, led by Papi Robles, indicated willingness to reach an accord but warned that if an agreement cannot be reached, ratification of both packages should be deferred. The approach links changes in permissive measures to a broader revenue strategy and to offset potential revenue losses. Unides Podem supports the same line of thinking.
Trustee of PPCV at the Valencian Courts, María José Catalá, commented on the situation as the debate moved forward. The round of questions in the assembly focused on three areas: the announced tax reform, the accompanying law that would raise a 10 percent citizenship fee, and plans from the Valencian left to introduce four new taxes, including a tourism tax and taxes tied to the Climate Change Law. Catalá argued that these moves could penalize industry, tile companies, and the tourism sector.
Protest in Alicante
“Taxes go out the back door,” Catalá asserted, criticizing Puig and questioning the value of the General Government Budgets for Valencians. She urged consideration of demonstrations planned for Alicante and pressed for clarity on whether the Valencia government would join. Puig did not directly answer, and he did not address the PP’s budget proposals. Catalá suggested that the community needs lower taxes, a revised financing model, and more direct government investment. Puig countered by defending Botànic’s policies as a way to meet the crisis, while announcing social measures such as an extended 30 percent public transport discount and the expansion of a breast cancer early-detection program to patients up to age 74.
Cs also voiced concerns about the tax cuts, describing the reform as producing savings for Valencians. Ruth Merino called the approach charitable, while others pushed for a broader tax strategy.
Green light to support Imserso
All Valencian parliamentary benches, aside from the far right, backed the Consell decree to provide aid to hotel businesses participating in the Imserso program. Hoteliers will receive 6.70 euros per night under the holiday plan, supported by central government funds that add 22 euros per person per day on full board. This contribution aims to stabilize employment in the low season, with a total estimated impact of 5 million euros.
Discounted transportation in 2023
Regional budgets for 2023 include extending the 30 percent public transport discount through the next year. The discount applies to regional transport rates, including bus concessions, during a year that will feature municipal, regional, and regional elections. Puig stated that this extension will coexist with the free Cercanías and Media Distancia services announced in 2023 by the Spanish government.
Climate change and animal welfare continue to be addressed
The Botànic coalition keeps its legislative agenda active seven months before elections. In a plenary session, changes proposed by the PP to the new Climate Change Law, which would introduce three new green taxes, were rolled back. The Animal Welfare Act also remains on the table, signaling continued attention to environmental and social measures.