Galicia will deflate personal income tax for income of less than 35,000 euros

The tax reduction will be applied with effect from January 1, 2022The Xunta calculates that each Galician will save, on average, 46 eurosThe decision will benefit around one million GaliciansGalicia joins the fiscal policy of the communities governed by the PP. Like Andalusia, Murcia and Madrid, the Galician community will also deflate the Personal Income Tax (IRPF) rates by 4.1% for the first three sections, that is, for incomes below 35,000 euros. This measure has been announced this Tuesday in the Parliament of Galicia, where the Galician president has appeared at his own request to advance the ‘main lines’ of the 2023 budgets. As explained by Rueda, this decision will have an impact on average incomes and low and will make each Galician save, on average, around 46 euros on their income statement. The decision, calculates the Xunta, will benefit around a million Galicians, which translates into about 46 million euros that they will stop paying. “Inflation cannot mean that Galicians pay more for personal income tax,” said Rueda. What does it mean to deflate personal income tax? Deflate does not exactly mean lowering personal income tax. The measure consists of raising the limits of the first three regional sections of personal income tax by 4.1%, that is, for income of up to 35,000 euros. That 4.1% is the percentage equivalent to the average wage increase, according to the labor cost statistics for the second quarter of 2022. This measure is intended to prevent the wage increases that Galicians may have had as a result of the rise in the CPI lead you to change the section and, therefore, to pay more on your income tax return. Rueda has assured that the deflation of personal income tax is a “fair” measure and tries to prevent price increases from having a double impact on taxation. The Xunta will deduct the impact of the rise in prices on the income tax. With effect from January 1, 2022, we approved a deflation of personal income tax in the first 3 installments, up to €35,000, and our personal and family minimums. €46 M na vindeira declaration pic.twitter.com/KpABprUvtt— Alfonso Rueda (@AlfonsoRuedaGal) September 27, 2022 Families with two children will be a large familyThis tax reduction joins others already announced in past weeks and that Rueda has recalled during his appearance in the Parliament of Galicia. One of them is to grant the category of large family to those with two children. Another measure is the extension of the wealth tax bonus from 25% to 50%. The president of the Xunta has also detailed that the departments of Economy, Industry, Employment Promotion and Social Policy will be the ones that grow the most in the regional budgets for 2023, which amount to the historical maximum of 12,800 million, 8.2 % more than those of 2022. Of the amount that rises, Rueda has calculated that 40% will be assigned to salary increases in public employment, as well as to face “greater energy and financial costs” of the Autonomous Administration.