The plenary session of Parliament of Navarra today rejected the amendment of totality presented by Navarra Sum to the bill of tax measuress for 2021, prepared by the Regional Government. As planned, the parliamentary groups of the United States voted against the amendment. PSN, Geroa Bai, EH Bildu, Podemos and Izquierda-Ezkerra. The project will now continue its parliamentary process, with the debate of partial amendments, before its debate and final vote.
Among the integrated measures the law, the Minister of Economy and Finance of the Provincial Government, Elma Saiz, highlighted the importance of exemption from payment for freelancers and SMEs of the Tax on Economic Activities (IAE) -the Government will compensate municipalities for the reduction in tax collection that this exemption will entail- and the abolition of taxation by modules and its replacement by a special direct estimation regime. In the latter case, the counselor has said that “it is not true that this new system involves an increase in tax pressure for entrepreneurs and freelancers whose income has been reduced by the pandemic“.
The law also provides for the establishment of new limits in pension plans and social security systems, the simplification of the deduction for job creation, the prevalidation of the audiovisual tax incentive and, in the fight against fraud, the application of tax control measures to avoid fraud in collection, the prohibition of the tax amnesties, the prohibition of software dual use (computer applications that facilitate the concealment of sales), or tax control measures on virtual currencies. Elma Saiz has assured that it is “very difficult for her to understand” the amendment presented by Navarra Sum. “It is a law very thought out for the times that run. The message of the PSN and the provincial government in fiscal matters is clear and the bill is a clear example of this. On October 22, the spokesperson for Navarra Sum assured that the Government of Navarra he was on the right track in tax matters. Nothing we have changed in these premises, there will be no generalized tax increase and the Government’s budget priorities remain the same, to face the pandemic from the public perspective and reactivate Navarra“, he assured. However, he pointed out that” everything changed when the budget agreement was made public – between the Government and eh Bildu– then came the umpteenth turn of Navarra Sum and proposed an amendment to the entire budget bill and tax measures “.
The Parliamentarian of Navarre Suma María Jesús Valdemoros has stated that the provincial government “raises taxes and wants to do it gradually, so that it seems that it does not hurt, lest the cold shower of more taxes arouse more anger in the citizens and collapse the electoral prospects -of the Government- “. Valdemoros has said that “raising taxes has contraindications because people react to them, increasing the tax pressure it is altering the incentives with which companies, households, and people decide, and that has a cost, but it seems that this does not matter to the Government, anything goes to hold on to power a legislature.
The pPSN MP Ainhoa Unzu has responded that “what is a drama is the destructive opposition that we have in Navarra“.” A few weeks ago Mr. Esparza – spokesman for Navarra Sum– He declared that the Government was on the right track in fiscal matters and said that the music of the project sounded very good to him, and this is the same text, without changing a comma, to which they have submitted an amendment to the entirety “. The spokeswoman from Geroa Bai, Uxue Barkos, has affirmed that the parties that make up Navarra Suma “have always been where they are today, in regressive policies, low-key in fiscal matters and waiting for the market to regulate beyond what it should regulate, which is people’s lives” .
The spokesperson for Podemos, Mikel Buil, after agreeing with the amendments provided for in the law, has stated that Podemos is not “reflected” in the proposal as a whole. Thus, he has regretted that his group has not managed to stop “the abusive increase” in rental prices and has not succeeded in getting “the pertinent studies done for a more favorable treatment of workers in poverty.”
Finally, the IE spokesperson, Marisa de Simón, has considered that “they are fiscal modifications that seem necessary to us, but they are totally insufficient because the tax justice that our system needs. The principle of proportionality continues not to be applied to taxpayers and the clearest example is that the same proportion is not applied to companies with large profits that is applied to income from work, “he assured.