In Valencia, a controversy over inheritance tax surfaced this Thursday as the Botànic alliance faced renewed pressure. The debate centered on a proposal affecting companies with annual invoicing above 10 million euros, targeting changes within the regional tax framework. The initiative, pushed by the PSPV, gained attention during the commission where amendments to the Integration Law were discussed. However, it did not advance without controversy, drawing strong opposition from Valencians who argued the measure favored the wealthiest and would drain public resources intended for those most in need. Support from the right-wing opposition helped the socialist bloc push the proposal forward.
The Economic Commission, backed by Valencia Courts, approved the PSPV’s proposal with two amendments tied to the Generalitat’s next year budget law. In the regional Parliament, the Socialists voted in favor, alongside the right-wing bloc comprising PP, Cs, and Vox.
Two amendments clarified that the progressive 99% bonus would apply only to small companies whose total turnover does not exceed 10 million euros at year-end, and they defined the distribution of personal income tax and other taxes within the region.
trustees
The three Botànic trustees did not hesitate to publicly voice their disagreement with the Inheritance Tax approach. As regional elections approach, parties increasingly emphasize their positions beyond long-standing alliances to win voter support. Socialist trustee Ana Barceló expressed hope that Compromís and Unides Podem would align with the socialist position before the commissions began, but that alignment did not happen.
Botànic’s energy about the policy moved into other areas as well, with discussions turning to how fiscal measures could support local institutions and businesses while maintaining public funding for essential services.
Botànic is also shaping its stance on energy policy, though tax relief for family businesses remains a point of contention. Pilar Lima, spokesperson for Unides Podem, argued that the aim is to avoid forgiving taxes for the very wealthy while ensuring that the burden does not fall on ordinary citizens. Valencians have remained resolute about the fiscal direction for the Valencian Community, a topic that has driven the coalition to redefine its approach in the wake of recent general policy debates and tax reform announcements by Generalitat leadership.
reactions
Unides Podem echoed the sentiment that fiscal policy should reflect a fairer system. Before the commission vote, spokesperson Pilar Lima filed a formal complaint regarding what she termed a unilateral PSPV decision on the inheritance subsidy. Lima emphasized that the PSPV risks aligning with right-leaning European tax strategies, arguing that a progressive government should pursue a tax framework where those with greater means contribute more and those with less carry lighter burdens. Several voices from the Botànic benches joined the debate. Héctor Illueca, the second vice-president and Minister of Housing, argued that the inheritance tax reform excluded companies with more than 10 million euros in invoicing and occurred with the support of PP, Cs, and Vox, criticizing the plan as insufficient and unfair. The discussion even drew attention from national figures who commented on whether the PSPV was weakening taxes on millionaires by partnering with the right.
Socialists contended that the approved measure was intended to support family business networks, arguing that such enterprises have sustained the regional economy through generations and should be treated with appropriate consideration alongside other incentives and supports.
Final green light for the Energy Agency
Botànic faced challenges in reaching agreement on subsidies for inheritance tax, and PSPV had to lean on its right-leaning partners to advance its own agenda. A point of consensus among the three regional partners emerged around the establishment of the Valencia Energy Agency. Although not simple, the partners resolved differences over the agency’s responsibilities, powers, and the legal certainty required for its operation in the coming weeks. Even with this agreement, questions remained about how renewables would be implemented and how the agency would function in practice.
Ana Barceló, a socialist trustee, called the energy agency deal a positive development, while the PSPV spokesperson credited the political will shown by Botànic partners in recent weeks for overcoming earlier obstacles. Papi Robles of Compromís described the agreement as a chance to restore the “botanical spirit” in regional governance. Pilar Lima of Unides Podem viewed the energy agency as a pivotal first step toward achieving energy sovereignty for the Valencian Community.
[Source: Valencia regional parliamentary records, 2024; analysis of party positions and public statements]