Román Rodríguez clarifies that the Canary Islands will be exempt from the kerosene tax

Roman Rodriguez. / c7

The Vice President of the Government of the Canary Islands recalls that the European Directive that regulates special taxes explicitly excludes the Archipelago from its scope of application

CANARY ISLANDS7 Santa Cruz of Tenerife

The Archipelago will be exempt from the green rate or tax on kerosene that is debated in the European Union, by virtue of the
Directive 2008/118 that regulates special taxes and that, in article 5, establishes that the Canary Islands
are outside its scopein the same way that the Islands are excluded from VAT under Directive 2006/112 -article 6- on the common system of value added tax.

The Canarian Vice President and Minister of Finance, Budgets and European Affairs, Román Rodríguez, clarified today in Parliament that the Archipelago is not concerned by the possible application of a special tax on aviation fuel, since this is provided for in European legislation .

«The Canary Islands are exempt from special taxes because that is how it was agreed at the time of their integration into the Union and, therefore, the kerosene tax does not affect us", said Rodríguez, who recalled that "in this case, it is not a particularity derived from our RUP condition but from our special model of accession to the EU".

The vice president highlighted, on the other hand, the "important step" that has been taken in the European Parliament to extend the exclusion of the Canary Islands from the emission rights trade and thanked the socialist MEP Juan Fernando López Aguilar for the work carried out in this regard. "This matter is channeled, although it is true that the final decision of the so-called trilogue is still pending," Rodríguez said.

Also in relation to the European files, the vice president insisted that the Government of the Canary Islands will continue to fight to exempt the Islands from the application
of the minimum rate of 15% in Corporate Tax for those companies that invoice more than 750 million euros.

"Although we agree with this measure, which aims to ensure that large transnational corporations comply with their tax obligations, we believe that the Canary Islands should be on the sidelines, not for a quantitative issue, but a qualitative one and due to respect for their tax differential, enshrined in the REF" , he pointed.

Regarding the REF, the vice president indicated that
"Usually" the governments of Spain find it difficult to understand the specificities of the Archipelagoso it is necessary "to always be organized from the Canary Islands to demand compliance".

But despite these circumstances, he indicated that the economic programs of the REF based on the laws are being fully complied with, just as the fiscal differential between the Canary Islands and the rest of the State is respected. There are indeed differences with the Government of Spain in relation to the interpretation and regulation of certain fiscal aspects, such as the
triangular trade in the ZECassured.

measures against inflation

The Vice President also responded in Parliament to two questions related to the economic consequences of the Russian invasion of Ukraine and the impact of high inflation on Canarian citizens.

In both cases, Rodríguez recalled that the recipes put in place by the Executive consist of a selective reduction in taxes for the most affected sectors -as was already done on the occasion of the pandemic, the eruption in La Palma or the refund of the tax of fuels to carriers, farmers and ranchers- and the granting of direct aid, such as those regulated for livestock activity.

“We have to act precisely and surgicallybecause some proposals, such as generalized tax cuts, are unfair and, moreover, may be counterproductive in combating inflation, which is right now the main problem in Western economies”, he said.

The rise in prices, Rodríguez recalled today, not only affects citizens, but also public administrations, which will have to pay more for the services provided, such as health, education or housing or infrastructure that are built.

In this regard, he explained that although tax collection has grown in the Canary Islands during the first quarter of the year by 19%, public spending has grown above that percentage, exceeding 20 percent.

On the other hand, Rodríguez also insisted that the President of the Government of Spain and his Minister of Foreign Affairs have violated international legality by positioning themselves in favor of Morocco in the
Sahara conflict and have generated
"an enormous diplomatic problem" with Algeria.

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