July 6, 2020

Entrepreneurs foresee a high income leak due to the tax increase – La Provincia

The Circle of Entrepreneurs of Gran Canaria rejects the fiscal increase included in the preliminary bill on the Budget of the Autonomous Community for next year. The group explains through a statement the consequences of raising taxes in the Canary Islands. The tax increase will affect high incomes. Therefore, employers warn that this type of income also "has a limit and there will come a time that they prefer to go to another country with better treatment."

"We are making it unattractive to invest in Spain or the Canary Islands with this continuous tax increase, especially when there are other countries in Europe where you pay much less," says Óliver Alonso, president ofDomingo Alonsoand member of the Business Circle of Gran Canaria.

The statement insists on disagreement with the Government's latest decision to raise the IGIC from 6.5% to 7%. "I am never in favor of tax increases, you have to put money in the pocket of consumers," Alonso emphasizes. In the text, the organization points out that the weakness of the economy and current affairs such as sustainability and the fall of thetourismthey must face different strategies to the "fiscal increase".

Entrepreneurs also point out that the tax increase will especially affect sectors "important for the economy and employment" in the Canary Islands, such as the automobile or perfume shops. The increase, according to them, will end up impacting on the client, since less high-end car will be sold, and as a consequence, the Government will collect less.

"It is a gum that can not continue to stretch. The tax overload of a car with the registration tax and the IGIC is already more than enough to always be trying to milk the same cow," said Alonso.

The increase in taxes, according to businessmen, comes at the worst time for the automobile sector, due to the decline in sales and the pressure of the European Economic Community to reduce emissions. So, "next year the cars will be more expensive," as indicated in the statement.

The proposal of the Businessmen's Circle is generally a State Pact for the next 20 years that pursues two objectives: to create a more efficient Public Administration and to ensure that the citizen has more money in his pocket.

The business organization also warns of the lack of coordination between institutions, which causes "there is a lot of money in councils and municipalities that cannot be spent by the type of legislation."

Idle money

"There are island councils with 400 million in the bank, an idle money for which the banks will begin to charge them for keeping it," said the president of Domingo Alonso.

The president ofCanary Executive, Ángel Víctor Torres, attended yesterday the pre-campaign events held in Tenerife and Gran Canaria of the candidate for President of the Government, Pedro Sánchez. In both acts, he argued that the budget bill presented by the Executive responds to the "needs" of the Canary Islands and the need to amend the "poisoned inheritance" left by the Canary Coalition in previous legislatures.

Torres has stressed that the presiding Executive will try to "follow the example" of the management carried out by a national counterpart throughout the country. In the new budgets the insertion benefits are increased and the endowment for housing increases by 20 million euros, as well as training for employment by 37.5 million.

The president has insisted on the increases in education and public health -up to 125 and 133 million, respectively-, among other measures, as well as a new game of 15 million euros in actions to mitigate the impact of climate change, a matter for which were allocated "zero euros in the previous mandate", has apostilled.

These actions, Torres insisted, have been designed with a view to responding to the needs of the social majority of the Archipelago.


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