The tax cuts moved forward to the Cortes this Wednesday as the regional government presses ahead with its fiscal plan. With the opposition from PSPV and Compromís, the administration relies on the majority held by the PP and Vox in the regional council. The Valencian authorities plan to approve on Thursday a decree that extends the water sanitation fee payment, a measure postponed for a year by the previous government, while also reversing several left-wing changes to the Parliament. Additionally, the decree will abolish the Inheritance and Gift Tax, subject to the vote outcome.
The Minister of Finance opened the session stating that change is real and that this government will deliver it. Tax matters dominated the general assembly’s afternoon agenda as representatives prepared to vote on Thursday. Supporters from PP and Vox celebrated what they view as an end to a period of financial trouble in the Valencian Community, while PSPV and Compromís criticized the water fee as a burden that would save 7.6 million euros for two million Valencians. Across the debate, it was noted that 364 million people are affected by inheritance issues among 18,000 cases.
The law, to take effect immediately after parliamentary approval, will be a decree on water sanitation fees. It permits pro rata wage payments that were halted a year ago to resume in invoices for up to 36 months, extending beyond the 18 months previously allowed, and aims to cut debt by 30 to 50 percent. In total, nearly 174,000 individuals in vulnerable households will face a public cost of 7.6 million next year as part of the measure.
“Family debt increased”
Environment and Water Minister Salomé Pradas asserted that the move is a concrete countermeasure to what she characterized as the Botànic government’s deception. She emphasized that Botànic did not exempt these fees, instead describing an increase in family debt. The timeline traces back to Consell decision 6/2022, which postponed the payment in early 2022 and 2023, extending again until July and then resuming in August.
While PP and Vox criticized the previous leadership and the alleged “gifts” or deception behind the measure, Socialist and Valencian representatives did not vote against it. Those who appeared confident in supporting the proposal argued that the new Consell would solidify Botànic plans. A parliamentary member remarked, welcome to Botànic policies, Mr. Minister, as noted by Cesc Roig.
Socialist parliamentarian José Muñoz stressed that families would save about 3.6 euros per month under the proposal. He added that his party has proposed a bill that would exempt payments for incomes below 30,000 euros and extend the equal share period to 60 months. He connected the measure to the afternoon’s broader debate on eliminating the Inheritance and Gift Tax.
“The beginning of social justice”
The tax proposal ignited further tension between the blocs. PSPV and Compromís had offered amendments to reject the Consell plan, but votes from the right could overturn these and allow the legislative process to proceed. The amendment is expected to move through a committee for partial amendments, with final approval anticipated at the end of November’s plenary session. Merinos stated that this marks the start of tax justice and will benefit not only the wealthy.
Merinos’ remarks drew sharp responses from the left. The PSPV criticized the reduction of taxes and argued that only a small number of people would pay the Inheritance Tax in 2022, highlighting that the richest would receive the majority of the relief. Supporters countered that the changes would provide relief to a broad segment of Valencians and reduce the burden on average families into the future.
Joan Baldoví of Compromís highlighted that the measure targets high earners and rejected any plan to waive inheritance in exchange for this tax. He noted that in regions like Andalusia, where the tax does not apply, a portion of inheritances were exempted in 2021, while in the Valencian Community exemptions were tied to the tax. He warned that the proposed reductions could enable significant investments, including hundreds of millions of euros directed toward classrooms, health centers, and additional family physicians if the debts were collected.