The article details a new wave of tax cuts proposed by Valencia's President Carlos Mazón, including a reduction in the Property Transfer Tax (ITP) from 10% to 9% on second-hand housing purchases, resulting in approximately €156 million in savings for taxpayers. The tax on documented legal acts (AJD) will also decrease from 1.5% to 1.4%, saving taxpayers €9.5 million. These measures are part of an agreement between the PP and Vox parties.
Additional measures include:
Mazón highlighted the success of last year's tax reforms, resulting in almost half a million Valencians saving around €50 million, particularly benefiting low- and middle-income individuals. Specific measures for flood victims were also implemented, including tax relief for home repairs and vehicle purchases, amounting to €32 million in savings. This is in addition to the €132 million already disbursed to businesses and self-employed individuals affected by the floods.
Mazón criticized the central government's approach to taxation for flood victims, claiming that the government plans to tax the aid provided, whereas the regional government is offering interest-free loans with three-year grace periods. He contrasted this with the central government's debt forgiveness to Catalonia.
Mazón estimates that Valencians will save €256.5 million in the 2024 tax campaign, with 424,000 beneficiaries. He also called on the central government to implement additional tax relief for flood victims, including a 0% VAT for vehicle replacement and home rehabilitation, and extending the exemption of IBI and IAE taxes for affected individuals in 2025.