Madrid's taxing battles with regions return again

28th April 2005, Comments 0 comments

28 April 2005, MADRID-The ongoing row between Spain's central government and its regions have returned, this time with a clash over a Catalan plan to levy its own taxes.

28 April 2005

MADRID-The ongoing row between Spain's central government and its regions have returned, this time with a clash over a Catalan plan to levy its own taxes.

Catalonia, in north-east Spain, wants to collect all the taxes and hand half over to Madrid.

The move would give more power to the fiercely independent and wealthy region.

Catalan nationalists have said it would be the best way to assuage their demands for greater devolution.

But Spanish prime minister Jose Luis Rodriguez Zapatero said the plan can only go ahead with the approval of all the country. 

At present Madrid collects all taxes and passes back to Catalonia 33 percent of income tax, 35 of VAT and 40 percent of 'special' taxes.

Catalonia says it should be paid compensation for the unfair amount of taxes which it claims it has been paid by Madrid in recent years.

The Catalan regional government also says the same system could apply to other regions throughout Spain, which demand more autonomy from Madrid.

The Economy minister Pedro Solbes said if this tax plan were to come in it would need to be applied in a equal way to all regions. 

[Copyright EFE with Expatica]

Subject: Spanish news

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