The Unchangeable Fiscal Pressure in Catalonia
Salvador Illa, the current leader of the Catalan government, has rejected the idea of reducing the tax burden borne by citizens. This position is based on the need to finance public spending and on a system of regional financing that is particularly detrimental to Catalonia.
Energy Taxes: A Paradigmatic Case
One of the most controversial aspects is the persistence of taxes that increase the cost of electricity. These taxes, originally linked to a tariff deficit that no longer exists, remain in force. Despite opportunities to allege the tax burden, Illa has made no move to modify this situation.
Economic Impact of Electricity Taxes
Approximately 1.5 billion euros are collected through these taxes, of which more than 20% comes from Catalonia. This translates into a direct impact on citizens’ bills, as 45% of the final cost of electricity is allocated to taxes, well above the European average.
A Call for Tax Simplification
Tax experts are betting on a simplification of the tax system that would allow a significant reduction in the price of electricity. If these taxes were eliminated, bills could drop by between 7% and 9%, a measure that would considerably ease the situation of families.
Political Differences
Parties such as Junts and the Popular Party strongly oppose the permanence of these taxes, while the central government and the Republican Left seem to maintain a more ambiguous position, which generates confusion about their true interests. The priority should be the well-being of citizens, above partisan interests.
Catalonia: A Case of Tax Injustice?
With a high tax burden, Catalonia finds itself in a complicated situation, collecting similar amounts to other communities such as Madrid, despite not having the same economic dimension. Data from 2018 reveal that Catalonia collected 23,767.3 million euros, compared to Madrid’s 23,580.2 million.
Inequalities in Tax Returns
The income that the State obtains in Catalonia is comparable to that of Madrid, but the difference in tax returns is alarming. While Madrid enjoys a tax surplus of almost 1,920 million euros, Catalonia only receives 453.7 million. This situation implies that Catalans bear an excessive tax burden, both at the state and regional level.
As Catalonia moves forward in a complicated economic context, it is essential that the rulers seriously consider the need for a change in fiscal policy to guarantee a fairer and more sustainable future for all citizens.