Cigarette and rolling tobacco, telephone bill and items considered luxury but whose consumption is widespread, such as perfumes or watches, will cost more as of January 1, 2020 due to the tax increase made by the Canary Government. The IGIC of luxury goods will increase from 13.5% to 15%, while the general type, which taxes products such as computers, sunglasses, restaurants or toys, will increase from 6.5% to 7%. It is precisely this increase that worries the economist of Totalia Asesores José Manuel Rodríguez, who explains that “it is more harmful for modest economies because it is not a redistributive tax but a linear one, that is, it affects everyone equally, both most vulnerable as to the wealthiest. ” Rodríguez believes that although the rise is only half a point, it will end up noticing because it will affect almost all the consumption made by the citizen, from the plumber to the vast majority of the products he acquires.
Also the price of housing will continue to grow, although more moderately, as it will increase by 4%, as will the rent, which could become more expensive up to 6%. To compensate, there will be other more positive increases, such as those of pensions (+ 0.9%) – which will benefit almost 330,000 canaries – and the salary of public employees (+ 2%), which will affect more than 120,000 workers in the Islands, although both depend on Pedro Sánchez achieving a stable government. In addition, natural gas will decrease on average by 4% and the electricity rate will be modified again with more time zones so that customers can adjust their consumption and try to achieve greater savings.
Phone. The regional government has increased the rate applied to telecommunications, which will increase from 3% to 7%, an increase that will be reflected in the invoice of the Canary landline and mobile phone.
Tobacco. The Regional Executive has also increased the tax on tobacco work by 5.71%, that is, two euros for every 1,000 blond cigarettes and two euros for every kilogram of rolling bite, both blonde and black. The packets of blond cigars will rise an average of 10 cents in the Canary Islands, according to the calculations of the sector, from which the regional coffers will receive about 5 cents on average.
Donations and successions. Another of the changes ofCanary GovernmentIt will affect the Inheritance and Donations Tax, which will continue to be 99.9% subsidized until it reaches 300,000 euros. From that amount, the fee will be 10% for every 50,000 euros of increase and 100% of the tax will be paid when the value exceeds 1.2 million. According to the data provided by the Canary Tax Agency, the regional government estimates that this increase will only affect 20% of the taxpayers who will inherit next year.
Living place. Acquiring a house will continue to be more expensive in 2020 and, although the growth will moderate compared to other years, the price will rise to 4% in the main capitals of Spain, according to estimates made by the real estate platform floors.com. Although this market is slowing down, the already high rental cost will continuein crescendoand will increase between 4% and 6%. The good news will come for those tenants who signed the rental agreement as of March 6, 2019, to whom the landlord will not be able to raise therentbeyond the CPI.
Air taxes The National Commission for Markets and Competition (CNMC) will reduce airport fees by 1.44% from March, compared to the 1.17% decrease proposed by AENA. Airlines pay to use certain services at the airfields – runways, runways, airplane parking or security services, among others – and subsequently impact it on the price of tickets, so this decrease should be reflected in the passenger pocket .
Banks. The banks will increase their commissions next year and incorporate costs into accounts that until now were free. For example, Cajamar has changed the conditions in its current accounts, which will go from an annual maintenance cost of 60 euros to 80 euros. Santander Bank will alter the clauses of several of its products: as of January 3, the commission for customers who do not meet the conditions of the Zero Account will go from 8 to 12 euros per month; The Classic Account and the Standard Individual Account will have an annual commission of 116 euros, that is, 20 euros more. BBVA will also increase maintenance costs to its unrelated customers from 60 euros to 80 euros on the first day of January. To avoid such expenses, banks are likely to try to place additional products to their clients such as insurance, loans, investment funds or retirement plans.
Gas. The Last Resort Tariffs (TUR) for natural gas, regulated by the central government and which are mainly used by domestic users, will decrease an average of 4% thanks to the reduction of raw material. For customers who use the gas for the supply of hot water, the bill will drop 3.3%, while for those who also have heating, it will be 4.2%.
The light. The central government has frozen both the fixed part of the electricity bill, which accounts for almost 40% of the total, and 20% that responds to taxes, so none of these variables will increase as of January 1. As for the remaining 40%, this will be difficult to calculate because it will depend on how each family manages its consumption. The CNMC has proposed to the State Council a new methodology to rate energy, whose price will vary according to the month, time and area. The objective is that each client tries to organize their consumption in order to save as much as possible.
In the case of the Canary Islands, the high season will be in the months of July, August, September and October, the high season in November and December, the average season will be in January, February and March, while the low season will be April , May and June. In addition, there will be six different time periods, of which the cheapest one will be between 00.00 and 8.00, while in the case of weekends and holidays, 24 hours will be low cost . In addition, an intermediate amount will be paid in the sections between 8.00 and 10.00, between 15.00 and 18.00 and from 22.00 to 00.00, while the most expensive bands will be those that go from 10.00 to 15.00 hours and from 6:00 p.m. to 10:00 p.m.
Anyway, from Endesa Canarias they assure that these changes will not be implemented on January 1 since last minute modifications may arise. In addition, the electricity company explains that the CNMC has yet to develop the relationship mechanisms between the distributors and the electricity distributors, so there will be an additional six months of adaptation. That is, this new type of billing can be delayed until the last quarter of next year.